West Perth-based base metals miner Vulcan Resources Ltd has accepted a $5 million convertible note facility from the LinQ Resources Fund and raised $1.9 million in a placement, the company announced today.
West Perth-based base metals miner Vulcan Resources Ltd has accepted a $5 million convertible note facility from the LinQ Resources Fund and raised $1.9 million in a placement, the company announced today.
Vulcan will use the funds for the feasibility study for its Kylylahti copper-cobalt project in Finlamd, which is scheduled for completion in April 2007.
The placement, of 10 million shares at 21 cents each, was made to Taylor Collison and Institutions. The note expires on June 30, 2008 and is convertible into ordinary shares at 30 cents per share.
The company's plan to list on London's Alternative Market is still going ahead, to take place in 2007
The full text of an announcement to the ASX is pasted below
Fundraising - LinQ Resources
Vulcan Resources Ltd is pleased to advise that it has accepted an offer from LinQ Resources Fund for the issue of a $5 million Convertible Note facility.
The Note expires on 30 June 2008 and is convertible into ordinary shares at 30 cents per share. Normal commercial terms and conditions apply, the interest rate is 10 per cent per annum.
The funds will be applied to Vulcan's Kylylahti Feasibility Study which is scheduled for completion at the end of April, 2007. The grant of the note is subject to formal documentation, due diligence and shareholder approvals.
Vulcan Managing Director Dr Alistair Cowden said 'We welcome the support of an experienced professional investment house, it is an endorsement of both Kylylahti and the deep portfolio of nickel, vanadium and platinum palladium projects that we have assembled'.
LinQ Managing Director Mr Clive Donner said 'With a pending feasibility study on a project in an excellent jurisdiction and with an attractive spread of commodity exposure, Vulcan is well suited to our investment philosophy and we look forward to a profitable relationship with the Company'.
Fundraising - Placement
A total of $1,981,095 has also been raised through a placement to clients of Taylor Collison and Institutions and sophisticated investors in Australia and overseas.
The company will issue 10,433,784 million shares at 21 cents per share being approximately 80 per cent of the weighted average price of the company's shares in the 5 trading days prior to issue as approved by shareholders at the company's AGM in November.
AIM Admission
The admission of the Company to the Alternative Investment Market is now expected to take place in 2007.
Trading Halt
By this announcement the Company requests its shares be released from trading halt.
