The Michael Kiernan-led Stirling Resources has raised over $2 million through a convertible note issue to an Austrian resource company.
The Michael Kiernan-led Stirling Resources has raised over $2 million through a convertible note issue to an Austrian resource company.
The announcement is below:
West Australian resources developer, Stirling Resources Limited (ASX : SRE), is pleased to advise the company has today raised $2.6 million through a convertible note to global resource company DCM DECOmetal GmbH (DCM), and will partner with DCM to develop Australian resources opportunities.
Stirling Resources has this week issued the note to DCM for 65 million shares, with an issue price of $0.04 cents and a total subscription of $2.6 million.
Stirling Resources Managing Director Michael Kiernan said the agreement provided a strong platform for DCM and Stirling Resources, and continued a long and successful history between himself and global resources company.
Headquartered in Austria, DCM has a global resources reach across 50 countries, and is an international leader in the trade of ores, alloys and metals, with interests in manganese, chromite, zircon and iron ore assets.
"I am pleased to partner with an organization such as DCM, with a shared view of establishing a diversified Australian resources group. Now is a great time to acquire projects cost effectively, in preparation for a rebound in markets and a return to strength in commodities over the coming years," Mr Kiernan said.
Stirling Resources is continuing to assess Australian resource development opportunities, with a specific interest in commodities including zircon, copper, gold and coking coal.
Mr Kiernan said not-with-standing the current downturn in global commodity prices, long term consumer trends in China and India would continue to support demand for products such as copper, gold and zircon.
"With the continued urbanization of China it is projected that 300 million people will move from rural areas to the city during a ten year period, driving demand for products such as copper and products containing zircon like ceramics, tiles and porcelain," Mr Kiernan said.
"Zircon and gold are two of the few metals that have held their own in terms of prices during the recent commodity cycles. We believe that with increasing disposable income in the middle classes of China and India, that gold could reach as high as AUD $2000 an ounce by the end of 2009," Mr Kiernan said.
Mr Kiernan said he expected opportunities for coking coal in the Indian market, where demand was being driven by the growth in the Indian steel production over the next decade. He said last year, India imported approximately 22m tonnes of coking coal, and this is expected to double over the next few years.
