Reed Resources has completed a $7.5 million capital raising through a placement and will use the money to develop several of its projects including the Mt Marion lithium downstream processing project.
Reed Resources has completed a $7.5 million capital raising through a placement and will use the money to develop several of its projects including the Mt Marion lithium downstream processing project.
In a statement Reed Resources said it had placed 15 million fully paid ordinary shares at 50 cents per share with institutional and sophisticated investors.
Patersons Securities acted as lead manager in the placement.
As well as accelerating the assessment of the lithium downstream processing the funds will also be used to fund the Barrambie vanadium study and works at Sand George and Comet Vale Gold projects.
"This raising will position the Company well for its working capital needs for 2010-11 to
materially develop and scale up its various projects to the next stages of their development" said managing director Chris Reed.
Full company statement below:
Australian diversified resources company Reed Resources Ltd (ASX: RDR) (the "Company" or "Reed"), is pleased to announce it has placed 15 million fully paid ordinary shares at 50 cents per share raising A$7.5 million before costs ("Placement").
Patersons Securities Limited as Lead Manager to the Placement.
The Proceeds from the Placement will primarily be used to for the following programs:
Mount Marion Lithium
Test work to enable rapid assessment of the down streaming opportunities for lithium
concentrates from Mt Marion in the goldfields region of Western Australia.
Barrambie Scoping Studies
The engagement of consultants to complete scoping studies to both expand the production rate from its Barrambie Vanadium project and undertake preliminary feasibility on a Ferrovanadium conversion circuit particularly in Malaysia.
Nimbus processing plant conversion and refurbishment Preliminary operating and capital cost engineering analysis for the conversion and refurbishment of the Nimbus processing plant.
Drill testing of extensions and parallel repetitions at Comet Vale Gold Project
A drill program to test for high-grade gold mineralisation in an adjacent, parallel structure to the Sand George lodes which have been mined over the last three years.
"This raising will position the Company well for its working capital needs for 2010/11 to
materially develop and scale up its various projects to the next stages of their development" said Chris Reed Managing Director of Reed Resources Ltd.
The Placement was made without a prospectus or other disclosure document to institutions and sophisticated investors under section 708 of the Corporations Act. It is contemplated that a "cleansing notice" under Section 708A (5) (e) of the Corporations Act will be given to the ASX immediately following the issue of the shares.