03/10/2007 - 15:26

View plans capital raisings for benefit of Bronzewing

03/10/2007 - 15:26

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Perth-based metals explorer View Resources Ltd plans to raise $10 million through a rights issue, the company announced today, as well as securing a new debt facility under plans to move its Bronzewing gold project into positive cash flows by December.

Perth-based metals explorer View Resources Ltd plans to raise $10 million through a rights issue, the company announced today, as well as securing a new debt facility under plans to move its Bronzewing gold project into positive cash flows by December.

 

 

The full text of a company announcement is pasted below

View Resources proposes to undertake a rights issue to raise $10 million. The Company's major shareholder Austral-Asia Resources and Infrastructural Investments Pty Ltd, a member of the IMC Resources Australia Group ("IMC") has indicated an intention to fully underwrite the proposed rights issue, subject to the terms being finalised and a formal underwriting document being agreed.

In parallel with negotiations for underwriting the proposed rights issue, View Resources is in discussions with IMC in relation to securing a more appropriate debt facility which may include a convertible note to replace the current Investec loan.

Full details of the rights issue and new debt facility (subject to shareholder approval if required) will be announced to ASX in due course

Progressing this new funding via the proposed rights issue and restructuring the current debt facility will allow View to focus on Bronzewing as it completes its ramp up during the December quarter. Forecast production for the quarter is 30,000 ounces, moving Bronzewing into positive cash flows by the end of the calendar year.

In parallel the Company's nickel Joint Venture at Carnilya Hill is also making good progress and is set to start delivery of ore by the end of 2007. This will see View deriving positive cash flows from both operations by mid 2008.

Whilst the Company believes that it has overcome many of the key operational issues at Bronzewing the additional funding is required to cover the recent cancellation of its hedging and to have a contingency whilst the Project completes its ramp-up and moves into a consistent cash positive position. It is proposed that this will be done by the rights issue which will allow all shareholders to participate.

IMC have been a long-term supporter of View and it shares the Company's strategic goal of becoming a mid-tier mining house. This latest step confirms their willingness to work with View to position the Company in the best possible manner going forward to achieve its goals.

View's Managing Director Tim Gooch re-affirmed "that whilst we have certainly encountered first hand the difficulties of ramping up a project in the current market, we are confident that Bronzewing is now at a position where the modelled tonnes and grade are starting to flow from all sources and we are close to achieving a steady state of operations. The improving performance at Bronzewing and our recent de-hedging places the Company in a position where it can move forward to take advantage of a rising gold price, and continue to build a stronger Company"

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