16/01/2008 - 11:09

Montezuma to raise $3m for Peak Hill drilling

16/01/2008 - 11:09

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Perth-based Montezuma Mining Company Ltd is seeking to raise up to $3 million to fund an accelerated exploration program at its Peak Hill gold mine near Meekatharra.

Montezuma to raise $3m for Peak Hill drilling

Perth-based Montezuma Mining Company Ltd is seeking to raise up to $3 million to fund an accelerated exploration program at its Peak Hill gold mine near Meekatharra.

The company has negotiated an underwriting agreement with Perth broker Cunningham Securities to raise between $2 million and $3 million by issuing up to 15 million shares at an issue price of $0.20 per share with a free attaching option exercisable at $0.20 for every four shares issued under the placement.

By meeting a minimum subscription of $2 million, Cunningham Securities will receive 1.5 million options exercisable at $0.35 and by raising the full $3 million, Cunningham will receive an additional 1.5 million $0.35 options.

The funds raised, together with existing cash reserves, will underpin an accelerated exploration program at Montezuma's 100 per cent owned Peak Hill gold mine.

This will include drilling at all four priority zones where the company is targeting extensions to the known resources.

Montezuma's strategy is to build on the existing +200,000 oz resource base to ultimately recommence production from a gold system that has historically produced in excess of 900,000 oz of gold.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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