Shares in Burswood-based gold and nickel explorer Tectonic Resources NL have risen 16 per cent after raising around $3 million through scrip issues to Melbourne-based Lion Selection Ltd and West Perth-based Jabiru Metals Ltd.
Shares in Burswood-based gold and nickel explorer Tectonic Resources NL have risen 16 per cent after raising around $3 million through scrip issues to Melbourne-based Lion Selection Ltd and West Perth-based Jabiru Metals Ltd.
Jabiru, a zinc, copper and silver explorer, will take a parcel of 30 million shares at 7 cents each for its part, spending $2.1 million, while Lion will take 12.9 million shares at the same price, investing $900,000 in the company, taking a 4.9 per cent stake.
Both companies will have the right to a position on the Tectonic board, the company said in an announcement,
In addition Jabiru has a first right to enter into an agreement to partially or fully underwrite capital raisings conducted by the Company during calendar year 2008, Tectonic said.
The full text of a Tectonic announcement is pasted below
Tectonic Resources NL (Tectonic) (TTR.ASX) is pleased to announce that Jabiru Metals Limited (Jabiru) (JML:ASX) and Lion Selection Limited (Lion) (LST:ASX) have elected to become cornerstone investors in Tectonic.
Subject to shareholder approval and the issue of a prospectus in respect of the placement, Jabiru will subscribe for 30,000,000 shares and Lion 12,857,492 shares in Tectonic at 7 cents per share for a total consideration of approximately $3,000,000.
Tectonic welcomes to its share register Lion, a highly respected investment house, and Jabiru, a well established Australia base metals producer with a market capitalisation of circa $630m. Jabiru has recently made the transition into production following the commissioning of the $69 million Jaguar Zinc-Copper Project located 300 kilometres north of Kalgoorlie in Western Australia. Jabiru also recently acquired the Benambra base metal project in Victoria.
Lion is a circa $330m publicly listed resource investment company providing long term equity capital to carefully selected small and medium enterprises. Lion invests in Australian mining and exploration companies with assets in Australia, Africa and South East Asia.
Tectonic sees the commitment by two well respected and high calibre organisations as a vote of confidence in the company and its principal asset, the Phillips River Project, comprising the Kundip gold/copper deposit and the Trilogy poly metallic base metal deposit.
Both Jabiru and Lion will have the right to a position on the Tectonic Board (subject to Tectonic's constitution and other regulatory requirements) and the company welcomes the additional knowledge and experience this would bring to the Company. In addition Jabiru has a first right to enter into an agreement to partially or fully underwrite capital raisings conducted by the Company during calendar year 2008.
The funds raised pursuant to these placements will be applied to the completion of a Bankable Feasibility Study on the Phillips River Project. Initially drilling will recommence at Kundip and Trilogy with further funds invested into the metallurgical evaluation of the Trilogy poly metallic base metal deposit. Drilling is planned to commence in November, 2007.
The full text of a Lion Selection announcement is pasted below
Lion Selection Limited (Lion) is pleased to announce that it has made an initial investment in Tectonic Resources NL (Tectonic). The investment of $0.9 million is part of a private placement subject to shareholder approval and the issue of a prospectus in respect of the placement to raise $3m, which will result in Lion holding 4.9% of Tectonic.
Tectonic is an ASX listed junior resource company with it's flagship Phillips River Project located near Ravensthorpe in southern Western Australia. The Phillips River Project consists of two deposits - the Kundip gold‐copper lodes and the Trilogy base metals (copper - lead - zinc - gold - silver) deposit that are within 10km of each other.
The proceeds from the placement will be used to commence drilling on the Kundip lodes and to complete metallurgical test work on Trilogy ore, with the eventual aim of producing a definitive feasibility study. For further information on Tectonic visit the website www.tectonicres.com.au
