Fox secures underwriter for options issue

Leederville-based mining company Fox Resources Ltd has secured Tricom Equities Ltd as the underwriter for the exercise of its 22.4 million options, to a maximum value of $16.8 million.

The full text of a company announcement is pasted below

Fox Resources Limited (ASX: FXR) is pleased to announce that Tricom Equities Limited ("Tricom") has underwritten the exercise of the Fox Resources listed options (ASX code: FXROA).

Fox currently has 22,475,648 listed options on issue. These options entitle holders to subscribe for new shares in the Company on a one for one basis at an exercise price of $0.75 per option. Under the terms of their issue, the options need to be exercised on or before 5.00pm (WST) on 30 June 2007, otherwise they will lapse.

Tricom has agreed to underwrite the exercise of the options up to a maximum of $16,856,736 on the terms and conditions set out in an underwriting agreement signed today, with an underwriting fee of 1.5%. The total funds raised from the exercise of these options will equate to approximately $18 million as funds of $1.3 million have already been received by the company from the exercise of 1.7 million options from option holders. The proceeds from the funds raised will be used primarily to:

• Fund capital expenditure on the Company's processing operations;
• Implement the Company's exploration program to extend nickel mine life;
• Fund the completion of the Feasibiltity Study for the Sholl B2 nickel project;
• Fund the Feasibiltity Study on all of the Whundo copper-zinc resources, including West Whundo, Whundo and Ayshia;
• Fund the exploration program regarding the tenements on which access rights were acquired from De Beers Australia Exploration; and
• Provide working capital.