WITH gold prices remaining at historical highs, Gleneagle Gold Limited, a new company led by chairman Tony Brennan and managing director Ian Prentice, is hopeful of raising $5 million through the issue of 25 million, 20 cent shares. Depending on demand, this can be extended a further $1 million through the issue of another five million shares.
The company is focused pre-dominantly on the Fortnum mill and exploration tenements in the Peak Hill region of WA.
If fully subscribed, $2.3 million of the money raised has been allocated to exploration, around $1 million for acquiring tenements, $483,000 for brokers fees and capital raising costs, $1 million for environmental bonds and $629,000 for administration and working capital.
The offer, for 57.2 per cent of the total issued capital of 43.7 million shares, is expected to close on June 27, with listing scheduled for July 8.
Gleneagle was incorporated in February 2003, solely for the purpose of acquiring and developing mineral tenements in the Peak Hill gold fields of WA.
Options have been acquired over three projects — with a combined area of 1,198 square kilometres — the Fortnum Gold Project, Peak Hill Regional Project and the Wembley Gold Project.
The Fortnum Gold Project also includes, what the company describes as, a well-maintained one million tonnes-per annum carbon-in-pulp (CIP) treatment plant and an estimated resource base of 287,900 ounces.
It paid Perilya Mines $50,000 for an option to acquire the plant for $750,000 and five million shares by early October. In addition a further $500,000 is to be paid once production starts and a production royalty is due after 50,000 ounces has been produced.
Perilya operated Fortnum from 1994, producing more than 540,000 ounces at cash costs of around $360 per ounce. It closed the plant almost two years ago when the gold price was more than $100 less than the current spot price.
Sine 1985, three gold ore processing plants were established in the region being Labouchere, Fortnum and Peak Hill, of which the Fortnum plant is the last one still remaining.
Yet the region has published resources totalling around 655,000 ounces of gold, including the Gleneagle projects, the Troy Resources Ltd, Three Rivers Gold Project and the Barrack Mines Ltd Peak Hill Gold Mine.
In addition to the Fortnum Project, the company has an option to buy an 80 per cent interest in the majority of the Peak Hill Regional Project from Jackson Gold Limited, and has entered a joint venture to earn an 80 per cent interest in the mining lease and mining lease applications from Horseshoe Gold Mine Pty Ltd at the Wembley Gold Project.
Tony Brennan, who takes on the role as chairman is also chairman of the unlisted venture capital group, Capital Growth Corp Limited. He is also non-executive chairman of the publicly listed company Plexus International Limited. He spent a period as chairman of Dolomatrix International Limited which specialised in treating hazardous waste and for nine years was managing director of Kilkenny Gold NL and Mount Edon Gold Mines (Aust) Ltd.
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