Gondwana to raise $700k to fund exploration

West Perth-based Gondwana Resources Ltd announced the placement of 35 million shares at 2c each, in order to raise $700,000 for its minerals exploration programs at the company's East Pilbara and Parker Range projects.

As reported in WA Business News on May 10, agreement has been reached to merge the company's Parker Range tenements with the adjacent tenements of Polaris Metals NL and to float the expanded package in a new company, Regatta Resources Ltd, subject to a number of conditions. If the float proceeds, Regatta will take over the activities which are presently being planned by Gondwana.

The offer is not underwritten, but will give priority to existing shareholders. The prospectus was lodged with ASIC last Friday, and the offer will close on July 15.

KPMG are acting as auditors to the deal, with Steinepreis Paganin as company solicitors.