20/05/2008 - 15:29

Overland sources $10m for study

20/05/2008 - 15:29

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West Perth based Overland Resources Ltd has lodged a prospectus to raise $10 million, with funds being used to conduct a full feasibility production study at its Andrew Zinc Deposit in Canada.

West Perth based Overland Resources Ltd has lodged a prospectus to raise $10 million, with funds being used to conduct a full feasibility production study at its Andrew Zinc Deposit in Canada.

The company will place 20 million shares at a price of 50 cents per share, with placement conditional to a shareholder meeting in June.

 

Below is an earlier announcment:

Overland Resources Limited (ASX:OVR, Overland Resources, Company) is pleased to announce that it has successfully 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. The shares were placed by KTM Capital Pty Ltd. This issue is subject to shareholder approval.
The proceeds from the placement are considered adequate to enable the Company to rapidly 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 is also pleased to announce that it 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.
Overland Resources welcomes the strategic partnership with Glencore International AG. 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. Further information regarding the placement will be set out in a Prospectus and a Notice of Meeting, both of which will be released shortly.

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