West Perth-based minerals explorer Venture Minerals Ltd has announced plans to raise $2.1 million through a placement to fund exploration of the Churchill Dam Iron-Oxide Copper-Gold Uranium project in South Australia.
The placement will be completed under a short-form prospectus.
The full text of a company announcement is pasted below
Australian based mineral exploration company Venture Minerals Ltd is pleased to announce that the Company has arranged the placement of 6.5 million ordinary shares in the Company to raise $2,145,000. The shares will be issued at a cost of 33 cents which is at a 7% discount to the 10 day weighted average share price up to the close of market Thursday, 5 April 2007.
Perth based securities firm Max Capital Pty Ltd will act as manager to the placement. Part of the managers' remuneration will be the issue of 150,000 listed options with an exercise price of 25 cents, expiring on 30 June 2008. Settlement of the placement is expected to be on or about 19 April 2007.
The funds raised will be used for exploration at the Churchill Dam IOCGU project in the Gawler Craton of South Australia. The Company has recently drilled two RC/Diamond holes into the project, both intersecting at least 150m of altered Gawler Range Volcanics. The Company believes the brecciation and alteration style intersected in the first two holes is consistent with mineralised IOCGU systems within the Olympic Dam province of South Australia. Assay results on the first two holes are pending.
The success from the first two holes have encouraged the Company to proceed with an aggressive 4 - 8 hole program of diamond drilling at the project expected to cost up to $2m. The funds raised from the Placement will be used to finance this program.
The Placement will be completed under a short-form prospectus, and as such will not be restricted to sophisticated investors.
This announcement effectively lifts the trading halt that the Company requested on Tuesday, April 10 2007.
The Company is not aware of any reason why the ASX would not allow trading to recommence immediately.
