11/04/2006 - 22:00

Magma seeks to raise $6m

11/04/2006 - 22:00

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Magma Metals Ltd, another float out of gold and uranium explorer Metex Resources Ltd and headed by former executives of Sons of Gwalia Ltd, is seeking to raise $6 million to explore a suite of base metals and platinum tenements in Western Australia and Ca

Magma seeks to raise $6m

Magma Metals Ltd, another float out of gold and uranium explorer Metex Resources Ltd and headed by former executives of Sons of Gwalia Ltd, is seeking to raise $6 million to explore a suite of base metals and platinum tenements in Western Australia and Canada.

Headed by former Goldfields Ltd and Sons of Gwalia geologist Dr Keith Watkins, the board includes Sons of Gwalia colleague Ralph Porter, and Max Cozijn, who’s also on the boards of Metex, Elkedra Diamonds NL and Oilex NL.

Magma will focus on two advanced projects in WA’s East Yilgarn and East Kimberley regions, and a platinum group elements (PGE) project near the world-class Lac des Iles palladium-platinum mine in north-western Ontario, Canada.

In the East Yilgarn, Magma will be looking to expand an 86,000 tonne resource grading 2 per cent nickel at Mt Jewell, 20 kilometres north-west of LionOre Mining International Ltd’s Silver Swan and Black Swan nickel mines.

In the East Kimberley, Magma’s tenements are in the emerging Halls Creek nickel-copper-PGE province, which hosts the operating Sally Malay nickel-copper mine, the Panton Sill PGE deposit and Koongie Park copper-zinc deposits.

The two Thunder Bay projects in Canada are located near the major Lac des Iles PGE mine and five million tonnes a year processing plant, with the initial focus expected to be on the more advanced Tib Lake project, where the geology is analogous to the five million ounce Lac des Iles deposit.

Dr Watkins said exploration programs would begin immediately after ASX listing, expected in early June.

Magma was founded by Messrs Watkins and Porter in conjunction with Metex, which has previously supported the successful IPO’s of AIM-listed copper explorer Zambezi Resources Ltd and ASX-listed diamond explorer Elkedra.

Metex shareholders will be offered a priority entitlement of up to 15 million of the 30 million share issue, the ultimate public holding likely to be about 51 per cent, with Metex, as key projects vendor, with 17 per cent.

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