Helix plans $2.28m placement

Helix Resources hopes to raise $2.28 million via a placement to advance exploration and evaluation at the company's minerals project in Australia and overseas.

Helix will place 19.8 million shares at 11.5 cents per share to professional, institutional and sophisticated investors.

In a statement to the Australian Securities Exchange, Helix said that the funds raised will be used with the company's existing cash reserves to advance its Yalleen iron ore project in New South Wales, its Canbelego JV and Restdown JV Projects and a prospective site in Chile.

See company statement below:

Helix Resources Limited is pleased to announce that it has agreed to place 19.8 million shares at $0.115 per share to raise $2.28 million (Placement) to professional, institutional and sophisticated investors.

Shareholder approval is not required as the Placement is being made under the 15% limit rule.

The $2.28 million raised under the Placement, after expenses of the issue, together with the Company's existing cash reserves of $3.1 million, will be applied towards the advancement of exploration, evaluation and development of the Company's mineral projects and for general working capital purposes.

Yalleen Iron Ore Project
o API as JV Manager is working on an evaluation which will influence the proposed detailed studies for development

Canbelego JV & Restdown JV Projects - NSW
o Drilling was completed in October as scheduled and assays are expected mid November 2010
o Initial work on development scenarios for the 18,000t contained copper resource [refer 1st October ASX announcement] using nearby processing plants has commenced.

Chile
o Recent Technical Director site visit has resulted in additional prospective ground being applied for by Helix's 100% Chilean subsidiary, together with commencement of discussions on acquiring more advanced copper and gold projects.

Olary Iron Ore JV & Tunkillia Gold JV
o Bonython Metals Group Pty Ltd for Olary and Minotaur for Tunkillia are funding the advancement of these Projects.

The Funds are expected 17 November 2010 and the allotment of Placement shares and Appendix 3B is planned for release 19 November 2010. A Notice required under section 708A of the Corporations Act is planned to be released in relation to the above placement on 19 November 2010.
Competent Persons Statements
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.