Gold Anomaly Secures Cornerstone Investor
Sydney, Oct 1, 2012 AEST (ABN Newswire) - Gold Anomaly Limited (
ASX:GOA) is pleased to announce that it has reached agreement with Hong Kong based investor Freefire Technology Limited ("Freefire") in relation to the following transactions:
1. Placement
Freefire will take a placement of 280,000,000 fully paid ordinary shares in the Company at $0.0025 (0.25 cents) per share, an investment of $700,000 by Freefire in the Company.
2. Loan
Freefire will provide a loan of $1.3 million to the Company. The first $1.3 million payable by Freefire in respect of the Rights Issue (see below) (whether taking up entitlements or in respect of underwriting obligations) shall be set off against the loan sum of $1.3 million. The balance of any of the principal sum of $1.3 million remaining after the Rights Issue will be repaid by the Company to the Lender as soon as reasonably possible following completion of the Rights Issue.
3. Partially Underwritten Non-Renounceable Rights Issue
In addition, the Company will undertake a non-renounceable rights issue at $0.0025 (0.25 cents) per share to raise up to $3.6 million ("Rights Issue"). The Rights Issue will be underwritten as to $2,800,000 by Freefire. The Company may appoint other underwriters to underwrite the remaining $0.8 million of the Right Issue. The full terms of the underwriting agreement between the Company and Freefire are yet to be finalised.
Further details of the Rights Issue will be announced shortly.
4. Objectives of the New Cornerstone Investor
Freefire's aim is to support the Company's plans to study the potential of near term production commencing at the high grade Artisanal Mining Zone at the Crater Mountain deposit, conduct an airborne geophysic study over the Crater deposit to further identify the regional potential of the deposit, continue to consider appropriate joint venture partners to enhance the development of the Crater and Croydon projects and repay the Bergen loan facility.
Gold Anomaly's Executive Chairman Greg Starr said "with Freefire Technology as a cornerstone investor in the Company, management can now continue to focus on advancing its projects rather than finding sources of funds so as to reflect the true potential value of the projects in our share price. As a result we expect shareholders will see the benefit of Freefire's investment in the short term."
Contact
Gold Anomaly Limited
T: +61-2-9241-4224
F: +61-2-9252-2335
WWW: www.goldanomaly.com.au
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