22/10/2009 - 09:26

Exco to raise $10.1m in insto placement

22/10/2009 - 09:26

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West Perth-based explorer Exco Resources plans to raise $10.1 million for further exploration work at its copper projects in north-west Queensland.

Exco to raise $10.1m in insto placement

West Perth-based explorer Exco Resources plans to raise $10.1 million for further exploration work at its copper projects in north-west Queensland.

 

The announcement is below:

 

Exco Resources Ltd (ASX Code: EXS) is pleased to announce that is has executed a placement agreement to raise A$10.1m (before expenses) through the issue of approximately 41.3 million shares at 24.5 cents each.

The placement has been managed by Fox-Davies Capital Ltd with shares issued to two institutional investors. Exco's largest shareholder Ivanhoe Australia Pty Ltd (ASX:IVA) has also participated in the placement, and will maintain their 20.18% shareholding.

The Company will issue all of the placement shares utilising its 15% capacity under Listing Rule 7.1.

The placement funds will be used to proactively advance the Company's portfolio of copper projects in north-west Queensland through:

- the drilling of priority targets in the E1 Camp, Monakoff Region and Pumpkin Gully Syncline with the aim of adding further value to the Cloncurry Copper Project,

- the commencement of new programmes at Hazel Creek, designed to follow-up on previous ore-grade intersections at various prospects including Eight Mile Creek and Turpentine South, and,

- Fast-tracking the completion of the remaining technical aspects of the feasibility work for the Cloncurry Copper Project.

Prioritisation and pre-planning has already been completed at key drill targets and work is scheduled to commence immediately. The Company looks forwards to providing details of results as soon as they come to hand.

As previously announced, Exco is already adequately funded to achieve its development objectives at the White Dam Gold Project and the project remains on track for first production in the first quarter of 2010.

 

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