West Perth-based resource development company Australian Mineral Fields Inc has raised $5.9 million through a placement to Canadian investors, raising funds for exploration activities on the company's projects.
West Perth-based resource development company Australian Mineral Fields Inc has raised $5.9 million through a placement to Canadian investors, raising funds for exploration activities on the company's projects.
The full text of two company announcements are pasted below
Australian Mineral Fields Inc. announced today that it has closed a private placement under which it issued 11,091,155 units at a price of Cdn.$0.50 per unit to raise gross proceeds of over Cdn.$5.5 million, less the commissions and expenses paid by the company in connection with the offering. PowerOne Capital Markets Limited ("PowerOne") acted as agent in connection with the sale of five million units, and the remaining units were issued on a non-brokered basis.
Each unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of Cdn.$1.00 per share. In addition, each unit entitles the holder to one penalty right convertible into an additional 0.01 units on December 31, 2007 and on the last day of each subsequent calendar month thereafter unless and until the common shares of the Company are listed and posted for trading on the Toronto Stock Exchange, the TSX Venture Exchange or, with the consent of PowerOne, such other stock exchange as may be put forth by the Company.
Proceeds from the private placement will be used to fund grassroot exploration activities and reconnaissance drilling activities on the Company's exploration projects, geological reports and other fees related to the Company's intended application to have its common shares publicly traded and for general working capital purposes.
"The success of the private placement enables Australian Mineral Fields to accelerate the execution of our growth strategy according to plan," said Company President and Managing Director Marcus Willson. "In less than 10 months following our inception, we have acquired interests in five gold projects in Western Australia that provide a solid foundation for building a balanced portfolio with strong potential to yield both near and longer term shareholder value."
Australian Mineral Fields is pleased to announce that it has formed a strategic alliance with Teck Cominco, Company President and Managing Director Marcus Willson said today.
The alliance, with all tenures initially to be 100% Australian Mineral Fields owned, enables the Company to conduct a comprehensive exploration program in the emerging Albany-Fraser Province in Western Australia.
The Company already has two gold projects in the region. The first, Fraser Range North, is about 275 km southwest of AngloGold Ashanti/Independence Group's Joint Venture Tropicana gold discovery, and interpreted to be along strike from AngloGold Ashanti's Beachcomber discovery. AngloGold-Ashanti CEO Bobby Godsell has announced his company will be spending approximately US$30M dollars on the Tropicana deposit to further define and develop the deposit. The Company's second project in the region, Salmon Gums, is about 500 km southwest of Tropicana at the interpreted southern extension of the Ida Fault. Work is anticipated to commence in both project areas in the very near future. The alliance initially will also bring at least one Teck Cominco project area to Australian Mineral Fields, a single tenement known as Cundeelee East, located approximately 30km NE of the Anglogold-Ashanti Beachcomber discovery.
Australian Mineral Field's initial review of unverified publicly available data suggests significant areas of:
- Arsenic , gold and copper anomalism at Fraser Range North
- Gold anomalism at Salmon Gums, as well as early suggestions of lignite-related uranium potential
"We are very pleased by the prospect of working with Teck Cominco, a global mining leader," said Willson. "It gives us and Teck-Cominco a strong strategic position within the emerging Albany-Fraser Province. Their expertise and resources will provide a clear pathway to development should a major discovery be made. In the event of a smaller resource being defined, the alliance maintains Australian Mineral Fields' ability to advance exploration and potential subsequent development."
