Perth-based metals explorer Prairie Downs Ltd will raise $2.5 million through a placement to fund exploration of the company's zinc project, as well as the scoping study now underway.
The company will offer 5.6 million shares at 45c each, to be placed by ABN AMRO Morgans Ltd.
The full text of a company announcement is pasted below
Prairie Downs Metals Ltd has mandated ABN AMRO Morgans Ltd to place approximately 5.6 million shares at $0.45 per share to raise approximately $2.5 million. The placement shares will be issued to professional investors with a settlement date of 25 January 2007. The funds raised will be used to finance ongoing exploration of the Prairie Downs Zinc Project and the scoping study now underway.
Drilling will recommence next month at Prairie Downs, subject to drill rig availability, with the initial objective of doubling the existing resource of one million tonnes at a grade of 8.3% zinc, 1.7% lead and 22g/t silver. The Company is confident of achieving this objective given that the three lodes which comprise the resource remain open at depth and along strike, and that the recently discovered Zed Lode is not included in the resource.
The scoping study results are expected to be available in March. The objective is to assist decision making regarding the economics of an initial smaller scale operation based upon a two million tonne resource. Results will determine whether the Company continues to focus on expanding the resource; or on infill, metallurgical and geotechnical drilling required for mine development.
