16/09/2009 - 09:18

Wolf Minerals rasies $4m for UK project

16/09/2009 - 09:18

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Minerals exploration company Wolf Minerals has raised $4 million for completion of a bankable feasability study on its Hemerdon Ball tungsten and tin project in England.

Wolf Minerals rasies $4m for UK project

Minerals exploration company Wolf Minerals has raised $4 million for completion of a bankable feasability study on its Hemerdon Ball tungsten and tin project in England.

The funding has come from two groups, Resource Capital Funds (RCF) and the Traxys Group.

RCF manage a series of funds that represent in excess of US$1 billion in committed capital primarily from US based investors, and Traxys are global leaders in financing, marketing, distribution and financial services for the mining, metals and minerals industries.

The Hemerdon Project is on track to supply 4 per cent of world tungsten supply by 2011.

 

 

Full announcement below:

 

$4m Capital Raising to drive the development of the Hemerdon Ball tungsten and tin project


Australian specialist minerals exploration and development company Wolf Minerals Limited (Wolf) (ASX: WLF) is pleased to advise that it has raised A$4 million from high calibre investors to complete the Hemerdon Ball project BFS. This placement is priced at 41 cents per share, a 7.3% discount to Wolf's 30 day VWAP.

- Wolf raises $4 m to complete Bankable Feasibility Study on Hemerdon Ball
- Hemerdon on track to supply 4% world tungsten supply by 2011
- Wolf welcomes Resource Capital Funds (RCF)
o RCF manage a series of funds that represent in excess of US$1 billion in committed capital sourced primarily from US based investors.
- Wolf welcomes the Traxys group
o Traxys are global leaders in financing, marketing, distribution and financial services for the mining, metals and minerals industries


The placement will be conducted in two tranches with 3,975,000 shares to be issued in tranche 1, within one week, to raise A$1.6 million. The second tranche of 5,781,098 shares, subject to shareholder approval, will raise a further A$2.4 million through the placement of shares at the same price amounting to a total capital raising of A$4 million less brokerage fees.

The first tranche has been placed with Traxys Projects for 3,975,000 shares. The second tranche will be placed with Traxys Projects and Resource Capital Funds (RCF) for A$2.4 million at the same price as Tranche 1. On the completion of both tranches each fund will have provided A$2 million for a total of A$4 million. Total new shares issued for both tranches will be 9,756,098 shares.

As part of the equity placement, Wolf has signed a Memorandum of Understanding (MOU) outlining an agreement with Traxys Europe to market 100% of its Wolframite concentrates, on commercial terms, and an offtake agreement for 100% of the tin concentrates at spot market prices.

Commenting on this announcement, Managing Director, Mr Humphrey Hale said "This is an exciting time for Wolf as it joins with strong strategic partners RCF and Traxys to bring Hemerdon tungsten and tin to the market".

ASX Release 15th September 2009
The Traxys group are global leaders in financing, marketing, distribution and financial services for the mining, metals and minerals industries, with locations in more than 20 countries. Traxys is aggressively focused on business development with its customers.

Traxys has created specifically dedicated investment vehicles to provide a full-range of financial and commercial solutions for mining and other production projects.

RCF is an international private equity manager, which specialises in mining and invests across a diversified range of commodities in projects located throughout the world. The group has a series of funds that represent , since inception, have provided financial support to nearly 80 mining companies involving projects located in 30 different countries and relating to 28 different commodities.

The first tranche of the share placement is set within the limits set out by the ASX listing rules, which allows a company to place up to 15% of its issued capital without shareholder approval. Wolf's board intends to seek shareholder approval to place the second tranche comprising 5,781,098 shares at 41cents to raise a further A$2.4m. A shareholder meeting will be convened and is expected to be held in early October.

Upon completion of this capital raising Wolf will have issued 9,756,098 new shares for a total of 36,256,098 shares on issue.onstraints.

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