24/01/2008 - 16:34

Hazelwood withdraws BigHill tungsten float

24/01/2008 - 16:34

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Perth-based tungsten explorer Hazelwood Resources Ltd says it has scapped the planned February 6 float of wholly owned subsidiary BigHill Resources Ltd, due to continued stock market volatility.

Perth-based tungsten explorer Hazelwood Resources Ltd says it has scapped the planned February 6 float of wholly owned subsidiary BigHill Resources Ltd, due to continued stock market volatility.

Originally known as Kiora Holdings Pty Ltd, BigHill was spun-out of Hazelwood late last year to develop the 145 square kilometre Big Hill Tungsten Project, located 45km north east of Nullagine.

BigHill launched its initial public offer on November 23, seeking to raise $7 million with 35 million shares at 20 cents each, to fund acquisitions and exploration.

The company was also after a further $3 million in oversubscriptions - allowing for a further 15 million shares to be sold at 20 cents each.

In an announcement to the Australian Securities Exchange today, Hazelwood said the true value of the companies may not be properly reflected if the float had proceeded, but it was commited to proceeding privately with the project with the aim of commencing production this year.

Funding of the project and its structure are the subject of a review.

"The true value of assets in the companies may not be properly reflected due to volatility in equity markets if the IPO proceeded at this time. This is clearly a risk that would not have been in the interests of Hazelwood's shareholders or prospective shareholders in BigHill," the company said.

"The Board has also resolved that the Big Hill Tungsten Project will proceed with an aim to completion of resource estimation, metallurgy and engineering, followed by a decision to mine in the current calendar year."

Hazelwood had planned to retain a 10 per cent stake in BigHill following the listing, while its shareholders had the right to subscribe to 28 millon shares - 80 per cent of shares offered - in a pro-rata priority entitlement.

The company is chaired by Hazelwood chair Mark McAuliffe, who is joined on the board by managing director Martin McQuade and Ian Richer. Carol New serves as company secretary.

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