Leederville-based mining company Fox Resources Ltd has placed 98 per cent of its $18 million options offer, raising $17.7 million after issuing 21.9 million options to investors.
Leederville-based mining company Fox Resources Ltd has placed 98 per cent of its $18 million options offer, raising $17.7 million after issuing 21.9 million options to investors.
The 2 per cent shortfall, of 563,433 options, will be placed with Tricom Equities Ltd in accordance with an earlier underwriting agreement.
The full text of a company announcement is pasted below
Fox Resources Ltd ("Company") is pleased to announce that 98% of ASX listed options (ASX Code: FXROA) with an exercise price of $0.75, which expired on 30 June 2007 have been converted to shares, with total proceeds of $17.7 million received to date. The shortfall of only 2% (563,433) of total options issued will be placed with Tricom Equities Limited in accordance with the Underwriting Agreement as announced on 13 June 2007.
Fox's Managing Director, Mr Don Harper, said the exceptionally high conversion rate for these options was a vote of confidence from the Company's shareholders.
"We are delighted with this support and are committed to delivering value through a three pronged strategy of metal production, project development and strategic exploration," said Mr Harper.
The proceeds from the funds raised will be used primarily to:
- Improve the Company's processing operation at Radio Hill to increase nickel and copper metal production
- Fund the completion of the Feasibility Study for the Sholl B2 nickel and copper project to extend the mine life of the Radio Hill operations
- Fund the completion of the Feasibility Study on the Whundo copper-zinc resources, including West Whundo, Whundo and Ayshia using the existing Elizabeth Hill processing facility to create a second revenue stream
- Implement the Company's strategic near mine exploration program to discover additional nickel, copper and zinc resources to maintain metal production through the Radio Hill and Elizabeth Hill processing facilities
- Fund regional exploration on the new Mt. Oscar Iron Ore Prospect and the De Beers tenements (figure 1)
- Provide working capital.
"We will soon have two processing facilities that can act like magnets to attract ore bodies that could potentially lie on the surrounding 3,000 km2 of tenement holding," he said, "This fits well with our focus of being a producer and processor of metals."
Fox is fully funded, unhedged, and through the Company's flagship Radio Hill operations, producing a positive cashflow.
