Australian Bauxite Limited (ASX:ABZ) Completes A$6 Million Placement To Fund Its Current Exploration and Development Programs
Sydney, Aug 23, 2010 AEST (ABN Newswire) - Australian Bauxite Limited (
ASX:ABZ) advises that is has completed a placement of 13.50 million fully paid ordinary shares (15.77% of its issued capital) at 45 cents per share to sophisticated, eligible and/or professional investors, as defined under Section 708 of the Corporations Act, raising A$6,075,000 before costs.
Following settlement on or before 27 August, ABx will have cash reserves in excess of A$10 million to fund its current exploration and development programs.
The shares are to be issued in accordance with a resolution passed by shareholders at the Company's Annual General Meeting on 28 May 2010.
State One Stock Broking Limited facilitated the placement with strong participation by institutional funds. ABx will release an updated top twenty shareholders as soon as practicable.
ABx will continue its high rate of exploration activity for the remainder of 2010, including the completion of 1,000 holes, and, as a result of this capital raising, increasing the exploration rate to 1,400 holes in 2011. By the end of 2010, ABx expects to complete first pass drilling on all of its granted tenements in Queensland, NSW & Tasmania, and complete prioritisation of its projects.
Initial Commercial Presentations
ABx plans to present initial results from several bauxite projects to potential customers and/or partners, commencing in September. Opportunities for project advancements may arise from these initial presentations but the detailed review of several projects will also help ABx to identify its projects with the highest potential for early development and production.
About Australian Bauxite Ltd
Australian Bauxite Limited (ABx) (ASX:ABX) has its first bauxite mine in Tasmania & controls the Eastern Australian Bauxite Province. ABx's 11 bauxite tenements in Queensland, New South Wales & Tasmania totalling 662 km2 are all 100% owned, unencumbered & free of third-party royalties. ABx's bauxite is gibbsite trihydrate (THA) bauxite that can be processed into alumina at low temperature.
ABx has committed a large proportion of its expenditure into Research and Development to find ways to capitalise on the main strengths of its bauxite type which is very clean, free of all deleterious elements and partitioned into layers, nodules, particles and grains of different qualities that can be separated into different product streams using physical, chemical and geophysical methods.
ABx has declared large Mineral Resources in northern NSW, southern NSW, Binjour in central QLD & in northern Tasmania.
ABx's first mine commenced at Bald Hill near Campbell Town, Tasmania in December 2014 - the first new Australian bauxite mine for more than 35 years.
ABx aspires to identify large bauxite resources in the Eastern Australian Bauxite Province and has created significant bauxite development projects in 3 states, Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.
ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.
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