Explorer Hazelwood Resources has revealed plans to raise up to $12.35 million to fund exploration works and a bankable feasibility at its Cookes Creek tungsten project in the east Pilbara.
Explorer Hazelwood Resources has revealed plans to raise up to $12.35 million to fund exploration works and a bankable feasibility at its Cookes Creek tungsten project in the east Pilbara.
The announcement is below:
Hazelwood Resources Limited ("Hazelwood" "the Company") is pleased to advise that the Company has reached agreement to raise up to $10.35 million through the placement of up to 57.5 million ordinary shares at an issue price of $0.18 per new share. The shares will be issued predominantly to international and domestic institutional investors and sophisticated investor clients of Hartleys Limited.
The Company also intends to undertake a Shareholder Purchase Plan ("SPP") to provide the opportunity for all Hazelwood shareholders to participate in the capital raising. Pursuant to the SPP, all eligible shareholders will be invited to subscribe for shares on the same terms as the placement to raise up to a further $2 million. The record date for the SPP is 20 October 2009. More information will be provided in the SPP offer letter which will be mailed to eligible shareholders in the coming week. Hartleys Limited is Broker to the Offer and the SPP.
"Hazelwood is delighted by the significant interest received from investors following our roadshow which included both Hong Kong and Singapore. Offers to participate in the placement were well in excess of the $10.35 million that is being raised" commented Hazelwood's Chairman Mark McAulliffe.
"Monies raised from the placement and SPP will allow us to fund the next stage of resource drilling at the Cookes Creek Tungsten Project. Hazelwood expects to commence drilling shortly with at least two drill rigs in operation for the next three months, on double shift. The Company will also progress the Bankable Feasibility Study at the Cookes Creek Tungsten Project, with completion of the study culminating in a decision to mine expected in May 2010".
The placement shares will be issued in two tranches. The first tranche of shares comprising of up to 19 million shares will be issued under the 15% placement capacity limit. Tranche one shares are expected to be allotted on or about Wednesday 28 October. The second tranche of shares comprising up to approximately 38.5 million shares will be subject to shareholder approval to be obtained at a general meeting of shareholders on or around 27 November 2009.
