NEDLANDS-BASED miner Gippsland Limited has placed six million ordinary shares in the company and three million free attaching listed options for a total consideration of $300,000.
Each option has an exercise price of 9 cents and a term expiring on December 31 2007.
The issue has been made to clients of Kirke Securities and the funds raised will be used, in part, to fund a bankable feasibility study currently being conducted on the 40 million tonne Abu Dabbab tantalum-tin-feldspar deposit in Egypt.
Gippsland holds a 50 per cent interest in that deposit through a joint venture with the Egyptian Government.
In addition, Gippsland will use some of the $300,000 to seek a listing on the London Stock Exchange’s Alternative Investment Market.
It has appointed Nomad Grant Thornton London and UK-based stockbrokers Hoodless Brennan & Partners to assist with the proposed AIM listing.
In an announcement to the Australian Stock Exchange Gippsland executive chairman Jack Telford says the dual listing will result in a more realistic valuation being placed on the company’s Egyptian project.
"The dual listing will also provide increased opportunities for the company to expand its resource base, particularly within North Africa, where a number of projects are currently undergoing preliminary evaluation by the company," he says.
Gippsland shares are trading at around 7 cents.
