Overland Resources Limited has entered into subscription agreements with institutional, sophisticated and industry investors to raise $10 million through the issue of 20 million new shares at $0.50 per share, with the issue subject to shareholder approval. The proceeds from the placement will be used to advance the Andrew Zinc Deposit in Canada through a full feasibility study towards production. An extensive work programme is in progress, with four drilling rigs now operating to convert resources at the Andrew Zinc Deposit to reserves. Further exploration drilling, geotechnical and metallurgical test work, and hydrological studies are also underway. The Company has entered into a Heads of Agreement with Glencore International AG ("Glencore") to secure sales and marketing of concentrates produced from the Andrew Zinc Deposit. The Company intends finalising an off-take agreement with Glencore, for the life of mine, in the near term. On completion of the placement Glencore will become a substantial shareholder in Overland Resources Limited. A representative from Glencore will also be appointed to the Board of Directors, to provide further expertise as the Company moves the Andrew Zinc Deposit to production. This partnership provides the Company access to the resources and knowledge of a major industry institution that has global mining, marketing, freight and smelting operations. The placement is conditional on shareholder approval at a general meeting of shareholders to be held in June 2008 and execution of formal off-take agreements with Glencore.
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