Patersons terminates CAR agreement

Central Asia Resources has advised that the underwriter of its $6.2 million renounceable rights issue, Patersons Securities, has exercised its right to terminate the underwriting agreement.

Patersons was able to terminate the agreement because the All Ordinaries stockmarket index has fallen more than 10 per cent below the closing level the day before the underwriting agreement was signed.

The 1:1 rights issue was pitched at 3.5 cents per share and was to help fund the company's mine project in Kazakhastan.

The company said this morning it intends to continue with the rights issue and capital raising on a non-underwritten basis and will lodge a supplementary prospectus this week, detailing changes to the timetable and other details as required.

It subsequently requested a trading halt, pending an annuncement later this week on the rights issue.