UK-based specialist fund management group RAB Capital's RAB Special Situation Funds has increased its shareholding in Perth-based Tennant Creek Gold Ltd to 19.9 per cent with RAB now holding approximately 20 million shares in Tennant Creek.
UK-based specialist fund management group RAB Capital's RAB Special Situation Funds has increased its shareholding in Perth-based Tennant Creek Gold Ltd to 19.9 per cent with RAB now holding approximately 20 million shares in Tennant Creek.
The increase comes as a result of the exercise of 6.5 million options.
At market close, Tennant Creek's share price was 24 cents.
Below is the edited announcement:
Tennant Creek Gold Limited (ASX: TNG) is pleased to announce that its major shareholder, RAB Special Situation Funds (RAB), part of the UK-based specialist fund management group RAB Capital, has increased its shareholding in TNG to 19.9% as a result of the exercise of 6.5 million options. RAB now holds approximately 20 million shares in TNG.
TNG's Managing Director, Mr Neil Biddle, said that RAB's decision to increase its holding represented a strong vote of confidence in TNG's asset base, management and development strategy.
"This investment, which further strengthens TNG's share register, represents a strong endorsement of our executive team and business model, in particular our strong focus on the forthcoming exploration and development program at our core project, the Manbarrum Lead-Zinc-Silver Project in the Northern Territory," Mr Biddle commented.
Last month TNG received one of the final access clearances required to commence exploration at Manbarrum, enabling it to mobilise an exploration team to commence fieldwork ahead of planned drilling programs. A further approval is required prior to commencement of drilling in certain areas.
TNG is targeting the establishment of a JORC compliant resource at Manbarrum, supplementing an extensive database of work by previous explorers including BHP-Billiton and Aquitaine. Located 70km north-east of Kununurra, the project currently includes pre-JORC lead-zinc-silver resources within the Main Zone
of mineralisation, as well as a broader tenement holding with the potential to host multiple Mississippi Valley
Type (MVT) lead-zinc-silver deposits within a 23km long structural corridor.
TNG is currently finalising a fully underwritten pro rata option issue to raise $1M. This will supplement its current cash reserves of over $3.5M.
The capital structure of Tennant Creek Gold Limited is set out below:
Ordinary Shares 100,128,270
Remaining RAB Unlisted Options 7,000,000 30 April 2007 Options 12c
Directors and Consultant Options 11,950,000 31 May 2007 Options 15c
The record date of the previously announced pro rata 2007 option issue, on a one for two basis, was 23
March and, accordingly, up to an additional 50,064,135 31 May 2007 options will be issued to shareholders.
At the conclusion of the option issue there will be up to 62,014,135 listed options.
