Perth-based gold and nickel miner View Resources Ltd has closed its offer to shareholders heavily oversubscribed at $5.8 million, from the $2 million target, enabling the company to recommission its Bronzewing gold mine next year.
Perth-based gold and nickel miner View Resources Ltd has closed its offer to shareholders heavily oversubscribed at $5.8 million, up from the $2 million target, enabling the company to recommission its Bronzewing gold mine next year.
The company raised $18 million earlier this year through a placement to British and Australian investors, which in addition to a $16.5 million debt facility through Investec Bank, will also allow View to participate in its Carnilya Hill nickel 30 per cent joint venture.
View purchased the Bronzewing project from Newmont in 2004 for $9 million, as part of the company's strategy to acquire and transform high quality mineral resource projects into cash producing operations.
The full text of a company announcement is pasted below
The Board of View Resources Ltd is pleased to announce the successful SPP which was heavily oversubscribed with $5.8 million received in application from its shareholders, well in excess of the $2 million target. The over-subscription clearly shows the strong support from within the existing shareholder base for the Company and its two projects, Bronzewing Gold and Carnilya Hill Nickel.
In light of the heavy interest for additional shares the Company has decided to accept over subscription to a total of $4 million recognising the demands of our shareholders. Those that applied will receive pro-rata allocations of new shares together with refunds.
View's Managing Director Tim Gooch stated "We see this as a vote of confidence and a strong endorsement from our shareholders of all we've done recently and more importantly of where we are going. We felt it was appropriate to give our existing shareholders the ability to participate within the current fund raising exercise and we're extremely pleased with their support."
View has now raised $38.5 million in debt and equity to recommission its Bronzewing gold mine in 2007 as well as participate in its 30 per cent Joint Venture at the Carnilya Hill nickel project in Kambalda. The Company is well positioned to take both of these assets into production in 2007 amidst current high gold and nickel prices, pending the successful outcome of the feasibility study at Carnilya Hill currently underway.
The additional $2 million will be used to cover the costs of the recently expedited resource definition program and pre-feasibility study at Carnilya Hill and provide further exploration funds for Bronzewing. Two exploration drill rigs have already been booked for early January. View is also pleased to announce that it has secured the services of an extremely experienced General Manager for Bronzewing and is currently short listing candidates for other key roles. The Company is currently negotiating and finalising major service and supply contracts.
Mr Gooch added "Progress is being made on all fronts for the Bronzewing restart and we are on track for a Q2 2007 commencement of mining activities as planned. View is fortunate to have world class facilities on site in great condition and ready to go, allowing us to move into production quickly, cost effectively and with low risk."