04/12/2007 - 13:05

Halcyon launches capital raising

04/12/2007 - 13:05

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Emerging Perth-based nickel producer Halcyon Group Ltd has announced a non-renounceable rights issue to raise funds for working capital and development of its Canegrass Nickel Cobalt project in the North-Eastern goldfields.

Halcyon launches capital raising

Emerging Perth-based nickel producer Halcyon Group Ltd has announced a non-renounceable rights issue to raise funds for working capital and development of its Canegrass Nickel Cobalt project in the North-Eastern goldfields.

The rights issue will take place following completion of the consolidation of the company's issued capital on a 1 for 10 basis, as approved by shareholders at the AGM on 30 November 2007.

The pro rata offer to shareholders is on the basis of 1 new share for every existing share held at 18 December 2007, at an issue price of 30 cents per share.

In addition, subscribers will receive one free attaching unlisted option for every two shares subscribed for, with an exercise price of 34 cents each and expiring on 31 January 2009. The closing share price pre-consolidation on 30
November 2007 was 3.0 cents. The issue is not underwritten.

Eligible shareholders will receive a prospectus on or about 20 December 2007. The prospectus will be issued under the name Nickelore Limited as a result of the company name change agreed to by shareholders at the AGM on 30 November 2007.

In accordance with the terms of the options on issue, optionholders will not be entitled to participate in the rights issue unless they exercise their options (in accordance with the terms of the options).

Managing Director Iggy Tan said the scoping study for Halcyon's Heap Leach Nickel Extraction Project was well underway and expected to be completed by the end of the first quarter 2008.

Assuming the scoping study was positive, it would begin the pre-feasibility study immediately, he revealed.

Mr Tan said the free attaching options would reward shareholders who had supported the Company's restructure and commitment to nickel production.

This issue is non-renounceable and will be available to eligible Halcyon shareholders registered on 18 December 2007.

Halcyon Group's primary focus is on exploring, realising and expanding the economic potential of the Canegrass, Mount Pleasant, Lake Marmion, Goongarrie East and Bardoc projects in Western Australia's Eastern Goldfields.

Halcyon acquired Mineral Rights to mine and extract 140,000 tonnes of nickel metal in laterite nickel products from the Canegrass Nickel Cobalt Project.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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