Perth, April 13, 2006 AEST (ABN Newswire) - Magma Metals Limited (ASX: MMB) was formed in June 2005 to undertake exploration, discovery and development of nickel, platinum, palladium, copper and zinc mineral deposits in Australia and Canada.
Magma Metals Limited advises that it lodged a prospectus for the offer of up to 30,000,000 Shares at an issue price of $0.20 per Share to raise up to $6,000,000 with the Australian Securities and Investment Commission ("ASIC") on 3 April 2006 ("Prospectus"). The offer is expected to close on the Closing Date (currently 22 May 2006) or as otherwise determined by the Company.
An electronic form of the Prospectus is available from the Magma Metals website and can be viewed by Clicking Here.
http://www.magmametals.com.au/prospectus/step1.asp
Highlights of the Prospectus follow:
Metals Markets
The current commodities boom is driving strong demand for metals. For many metals with industrial uses, including nickel, copper, platinum, palladium and zinc, major new sources of supply will be required to meet future demand growth. Exploration is the principal means of securing these through discovery and development of new mineral deposits.
Magma's Assets
Magma Metals Ltd (Magma) has acquired the rights to earn majority interests in seven nickel-copper-PGE (Platinum Group Elements) exploration projects in the East Yilgarn and East Kimberley regions of Western Australia and in the Thunder Bay region of north-western Ontario, Canada. The East Kimberley Projects are also prospective for zinc.
The three East Yilgarn Projects cover a large tenement holding of approximately 1,800kmSq in Australia's premier nickel production province. The projects contain several exploration targets with potential for discovery of new economic nickel sulphide deposits. The Mt Jewell Project is the most advanced, containing an Inferred Mineral Resource of 86,000 tonnes at 2% nickel and several ore-grade nickel sulphide drill intersections at other prospects. The Mt Jewell Project offers a potentially short lead time to development.
The two East Kimberley Projects are prospective for nickel, copper, PGE's and zinc and cover a tenement holding of 550kmSq in the emerging Halls Creek nickel-copper-PGE province. The Sally Malay nickel-copper mine, the Panton Sill PGE deposit and the Koongie Park copper-zinc deposits occur within this province. The Eastman Project is the more advanced and contains copper-zinc prospects with potential for early resource definition and development as well as nickel-copper sulphide targets. The Laura River Project is also prospective for gold and uranium.
The two Thunder Bay projects are prospective for PGE-dominated nickel-copper-PGE mineral deposits and are located near a major PGE mine and processing plant at Lac des Iles. The geology at the more advanced Tib Lake project is analogous to that at the 5 million ounce Lac des Iles mine 15km away and ore-grade PGE mineralisation has been intersected in drilling.
Magma is managed by an experienced and successful team with significant expertise in exploration, resource development and the corporate and financial aspects of the resources industry.
Objectives and Strategy
Magma aims to generate wealth for shareholders through discovery and development of base and precious metals ore bodies.
Magma's projects will be evaluated using systematic modern exploration methods and technologies guided by best practice geological science and the latest mineralisation models.
Management will focus on opportunities to generate early cash flow from development of the Company's projects.
Exploration Programs
Magma has planned aggressive and focused exploration programs to evaluate a suite of highly prospective targets on its projects. The immediate focus will be on drilling of defined targets to provide early opportunities for resource discovery, development and production.
Key Investment Risks
The following are risks the Company considers to be key investment risks:
- Failure of exploration to define economic mineral deposits.
- A downturn in commodity prices.
- Failure of third parties to perform contractual obligations in accordance with the material contracts summarised in Section 10.5 of the Prospectus.
Refer to Section 9 of the Prospectus for more information on investment risks that could adversely affect Magma's financial performance and the value of its Shares.
These highlights are not intended to provide full information for investors considering an application for Shares offered pursuant to the Prospectus. The Prospectus should be read and considered in its entirety.
Contact
Email: magma@magmametals.com.au
TEL: +61 8 9321 5000
FAX: +61 8 9321 7177
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