Perth-based Hazelwood Resources Ltd has reached in principle agreement with a number of investors to raise up to $3 million to progress studies at its wholly-owned Big Hill tungsten project.
The raising will be through the the issue of up to 20 million ordinary shares at an issue price of 15 cents per share.
The placement of shares will be predominately to clients of Hartleys Limited.
The capital raising will allow Hazelwood to progress feasibility studies on the Company's 100% owned Big Hill Tungsten Project, where Hazelwood is commencing resource drilling and is progressing discussions with a number of strategic groups who have expressed interest in partnering with Hazelwood at Big Hill.
Commenting on the placement, Mark McAuliffe, Executive Chairman of Hazelwood stated "the next six months will be a very active period for Hazelwood as it progresses Feasibility Studies on its Big Hill Tungsten Project. This placement allows the Company to immediately progress its resource drilling program at Big Hill.
Metallurgical testwork and preliminary engineering will also proceed. Funding will allow for further drilling at the Anomaly Hill Nickel Project together with initial drilling of the Cookes Creek Iron Ore Project.
The placement in Hazelwood will be made in two tranches. The allotment of up to 7.5 million Tranche 1 shares falls within the Company's ASX Listing Rule 7.1 15% placement capacity and is not subject to shareholder approval. The allotment of up to 12.5 million Tranche 2 shares will be issued subject to shareholder approval at a meeting of shareholders currently scheduled for early August 2008.
