Midas Resources is seeking to raise $1.15 million through a share purchase plan and will use the funds to advance its project exploration and evaluation programs.
Midas Resources is seeking to raise $1.15 million through a share purchase plan and will use the funds to advance its project exploration and evaluation programs.
Midas has interests in the Pilbara and Leonora.
Under the SPP eligible shareholders will be able to purchase additional shares in Midas at 3.8 cents per share.
In a statement to the Australian Securities Exchange, Midas said this represents a 24 per cent discount to the market price at the close of trade yesterday.
Shareholders will be entitled to purchase up to 15,000 additional shares.
See company statement below:
Midas Resources Limited (ASX: MDS, Midas or the Company) is pleased to announce a Share Purchase Plan (SPP), providing shareholders an opportunity to increase their holding in Midas as it advances a number of exciting opportunities in iron ore, gold and base metals.
Under the SPP, eligible shareholders will be able to purchase additional shares in Midas at 3.8 cents. This represents a 24% discount to the market price at close on the record date of 8 September and a 10% discount to the volume weighted average price of the past five trading days prior to announcement.
Shareholders are entitled to purchase up to $15,000 worth of additional shares without incurring brokerage or other transaction costs. Eligible shareholders include those registered as at 5pm WST on 8 September 2010 with a registered addresses in either Australia or New Zealand.
The issue will be limited to 30,363,158 shares to raise a total of $1,153,800.
Funds raised from the SPP will be used to advance project exploration and evaluation programs, support other growth activities and provide additional working capital.
In recent months Midas has achieved early exploration success at its West Pilbara iron ore project and has defined an initial resource. The Company is now focused on expanding resources and evaluating development options in the region.
Midas is also continuing to explore a number of development options for our Fortitude gold project, and has extended its landholding in the region with an application for exploration licenses south of Leonora.
BACKGROUND TO THE OFFER
The Company is focusing on the following major activities:
Pilbara West iron ore - iron ore exploration in the Pilbara (fig 1) is being advanced and a high-level study has been commissioned into access to infrastructure in the West Pilbara. The results of this study will help drive ongoing iron ore exploration and acquisition strategy in this area. A Resource estimate of 11.5 million tones at 53.1% Fe, 0.042% P, 7.75% SiO2, 5.57% Al2O3 and 9.86% LOI at a 50% Fe cut off grade has recently been announces by Midas for the West Pilbara project. The Resource is estimated in accordance with the JORC Code (2004) and it has been classified in the Indicated category. The Company plans to continue with the evaluation and testing of this and other iron ore prospects.
Lake Carey Gold - Following the Boards' decision to evaluate its alternatives to extract maximum value for its advanced Fortitude gold project, a number of companies have expressed an interest in gaining access to the data for the purpose of carrying out studies to determine if submission of a commercial proposal is justified. Confidentiality agreements have been signed with selected parties.
Alternatives may include development of the Fortitude Project on its own, or in partnership with others, or disposal of all or part of the Midas' 100% interest in the project on favourable terms. No commercial discussions have been entered into at this time and exploration is proceeding.
Diamond drill testing of the Intrepid Gold target (fig 2, 3 & 4) is to commence in October following receipt of access approval from the Department of Mines and Petroleum. The Intrepid target is a significant magnetic anomaly located between the Bindah and Fortitude shear zones. There is no outcrop and previous aircore drilling by Midas has demonstrated that the east-west trending magnetic anomaly is related to iron rich sedimentary rocks that are folded and dipping shallowly to the north. A cluster of aircore drill holes that intersected deeply weathered iron rich sediments returned anomalous gold results (previously reported) in proximity to the Bindah shear zone. The Bindah shear zone is considered to be an important controlling structure to the known gold mineralisation at the Bindah and Gallant prospects.
The iron rich sediments intersected at Intrepid are considered to be a very favourable host for gold mineralisation within the Laverton Tectonic Zone e.g. at the 7.7 million ounce Sunrise Dam gold deposit, which is located 35km north of Lake Carey.
The Resource estimate for Fortitude (table 1) has been updated for use in pit optimization studies.
