Discovery Nickel Limited
Brisbane, Aug 2, 2006 AEST (ABN Newswire) - Macquarie Bank and another major financial institution have taken a combined shareholding of nearly 13% in Discovery Nickel Limited (ASX: DNL) after an A$2.45 million placement by the Australian base metals explorer.
Brisbane-based Discovery announced today that it had issued a total of 10.6 million ordinary shares at $0.23 a share, with the proceeds to support further exploration and drilling on the Company's Maun copper project in north west Botswana.
As a result, Macquarie (with 5 million shares) and the other major financial institution (5.6 million shares) will both rank in Discovery's top four shareholders.
Discovery's Managing Director, Mr Jeremy Read, said the Company was delighted to welcome the two major institutional investors as new shareholders in the Company.
"We believe the investments by these two leading international funds managers represent a strong vote of confidence in Discovery's exploration strategy in Botswana, and support our own assessment of the significant potential of the Maun copper project," Mr Read said. "Both funds institutions are major investors in the resources sector and the Company looks forward to long term relationships with them," he said.
"Discovery will now aggressively execute our drilling and exploration program to assess the Maun copper resource plus a range of exciting copper-silver targets in the same area."
Maun Copper Project Drill Program
Discovery owns 100% of the Maun copper project which has a known JORC Inferred resource of 20.1 million tonnes @ 1.2% copper, at a cut-off of 0.6%.
Discovery expects to commence a diamond drilling program of approximately 2,700 metres early this month. The new program will investigate the potential to increase the overall grade of the initial inferred copper resource defined at the Zeta Prospect (formerly known as the G Grid South Prospect) as well as the potential to increase the size of the resource.
A range of high quality exploration targets will also be drill tested.
Contact
Jeremy Read
Managing Director
Ph: 07 3218 0202
Mobile: 0409 484 322
jeremy@discoverynickel.com.au
www.discoverynickel.com.au
info@discoverynickel.com.au
Peter Gill
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: 08 8234 9555
Fax: 08 8234 9566
Mb: 0417 784 059
peter@fieldpr.com.au
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