West Perth-based minerals explorer Warwick Resources Ltd has raised $3.5 million through a placement to fund followup drilling on the company's gold and copper projects, along with work on other projects.
West Perth-based minerals explorer Warwick Resources Ltd has raised $3.5 million through a placement to fund followup drilling on the company's gold and copper projects, along with work on other projects.
The full text of a company announcement is pasted below
Diversified Pilbara explorer Warwick Resources Limited (ASX:WRK) today announced it has raised $3.5 million through the placement of up to 7.77 million fully paid ordinary shares at an issue price of $0.45 per share.
Approximately 60% of the placement shares will be issued immediately under the Company's 15% placement capacity, and the balance subject to shareholder approval. On completion, the Company will have cash reserves in excess of $7 million which shall be applied towards exploration and working capital purposes.
The placement, made to sophisticated investors and institutions, was managed by Triple C Consulting, Total Capital Solutions and RM Capital. Some of the funds raised will be used for follow up drilling and exploration on the Company's Jimblebar gold and Copper Range projects. The results of the maiden drilling program were better than expected and the Company is focused on adding further value to these projects.
The remainder of the funds will be applied towards several new developments that the Company has identified outside of its IPO prospectus, including:
- Outcropping channel iron mineralisation near the Company's Jimblebar gold project. The deposit is located approximately 8km from BHP's Jimblebar iron ore mine.
- Several other channel iron targets to the south of Newman. The Company believes the region has the potential to become a new channel iron province, and has applied for more than 800 km² of new tenements targeting channel iron mineralisation.
- The Company has increased and consolidated ownership of its gold and chromite projects through strategic acquisitions from Consolidated Minerals Ltd and Allarrow Pty Ltd.
- A significant radioactive complex at the Company's Woggaginna uranium project which is currently being investigated by airborne surveys to assist in the identification of drill targets.
- The acquisition of historical data to allow for the estimation of an inferred resource of lateric nickel and cobalt on the Company's Waite Kauri North project, located near Leonora, Western Australia.
Technical Director Bruce McQuitty said that it was pleasing to have received a very strong level of support for the placement.
"The Company is well funded to explore its portfolio of prospective tenements in the Pilbara, with resource drilling to commence on the more advanced projects later in the year," Mr McQuitty said.
"We expect to be very active over the next quarter with scheduled drilling programs throughout August, September and October 2007," Mr McQuitty said.
The Company will pay a fee of 6.5% of the funds raised to brokers who managed the placement. This fee comprises a cash component of 5% and subject to shareholder approval, an option component of 1.5% (one option for each $1 dollar raised under the placement). The unlisted options will each have an exercise price of 45c and an expiry date of 30 June 2010.
