Image bounces back to the market

NEW float Image Resources NL was forced to alter its prospectus last week after the original prospectus failed to outline clearly what minimum subscription could be taken for the initial public offer to go ahead.

After lodging a supplementary prospectus earlier this week, the company got a signal from the Australian Securities and Investment Commission that it could go ahead in its bid to raise $4 million, through the offer of up to 20 million fully paid 20-cent ordinary shares.

Backed by former Image subsidiary Magnetic Resources, the float of Image marks a period of transition for the company from its role as a database supplier to other mining companies to that of an explorer company.

Magnetic Resources and Image director George Sakalidis said eight projects had been identified from its aeromagnetic database with many of the projects at, or close to, drilling stage.

The projects include Mt Elsie, Mt Hays, Corunna Downs, Warrawoona, Bullfinch, Jilbadgie, Poondarie and Doolgunna – all in WA.

Image Resources holds about $1 million or 6.3 per cent of Magnetic Minerals Ltd. Magnetic was listed on the Australian Stock Exchange in October 2000.

On completion of the $4 million offer, sponsored by broker Hogan & Partners, the new shares will represent about 40 per cent of the company with a market capitalisation of more than $10 million.

Olympia looks to market for funding

Diversified industrial group Olympia Resources NL has launched a $3 million share offer to investors through 15 million 20-cent shares. The deal offers exposure to a diverse portfolio, including advanced garnet and mineral sands projects in the Northern Territory and WA.

The Harts Range Garnet Project, 167 kilometres north-east of Alice Springs, is planning to commence production by 2003 to meet the demand for industrial garnet, a heavy gemstone used for abrasive blast cleaning and water jet cutting markets.

The 397sq m mineral sands project is located near the Illuka Resources and Cable Sands Capel and Yoganup sand mine projects.

A letter of intent has already been signed by the company with an international abrasives company for the marketing of garnet through Australia and Asia.

The Harts Range project includes tenements hosting inferred resource estimates of 2.3 million tonnes of contained garnet.

Olympia plans to spend $450,000 on the Hart project and $300,000 on the mineral sands project in the first year.

Olympia is headed by Alan Boys and Alan Lockett, along with non-executive directors John Baxter, Michael Arnett and David Slater.

On listing the company will have a market capitalisation at the issue price of $7.1 million.

Metex to expand exploration

Metex Resources Limited is undertaking to raise up to $4 million to expand its exploration activities in the Laverton region of WA and an exploration project in the Carnarvon Basin.

Laverton, a joint venture with Aurion Gold Ltd, has reported results that indicate 2.65 million tonnes at 2.5 grams per tonne gold.

Metex shares have doubled since a 12-month low of 4 cents/share in November to sit earlier this week at 8 cents. However, the market greeted the capital raising with caution, with only a small number of trades coming though after the announcement.

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