8 December 2008
CATALPA SUCCESSFULLY RAISED $3.5M IN
Resources (ASX: CAH), Perth-based emerging gold producer announced it had
closed a renounceable Rights Issue on 3 December with strong
support from its shareholders despite the difficult market.
The rights issue raised
approximately $3.5 million before costs of the issue.
Bruce McFadzean, Catalpa Resources
Managing Director said the Board is delighted by the level of shareholder
"We are very pleased with the
outcome of the Rights Issue which was well supported despite an extremely
difficult market environment. This shows that Catalpa Resources continues
to have a very strong and supportive shareholder base enabling the Company to
pursue its objectives," Mr McFadzean said.
Mr McFadzean confirmed
the funds will be used to continue Catalpa's ongoing drilling programmes and to
provide for working capital to further expand on Reserves and improve economics
of the Edna May Gold Project.
"We are greatly
appreciative of the continued support of Catalpa's shareholders who share the
Board's confidence in the positive outlook for gold in general and for
Catalpa's Edna May Gold Project in particular," Mr McFadzean said.
The holding statements for new
securities will be dispatched shortly.
further enquiries contact:
Warrick Hazeldine / Annette Ellis
Media and Investor Relations
Tel: (08) 9485 1254
Catalpa Resources Limited (ASX: CAH) aims to become Australia's
next mid tier producer by developing its open pit assets, located on its
extensive and wholly-owned mining tenements in Western
is on the cusp of a new phase of development towards production at its Edna May
(gold) Project, conveniently positioned a few kilometres from the
infrastructure of Westonia, an established town with a long mining history. The
project is just three hours or 300km by road from Perth;
half way between Perth and Kalgoorlie
and ideally situated to be serviced by both centres.
there have been three previous successful mining programs which have occurred
both above and below the planned open pit at Edna May, which significantly
reduces the risk of Catalpa's current project.
has an experienced and innovative Board and management team that is
committed to realising a timely production and cash flow profile from the
development of the Edna May open pit resources.
is the company's immediate strategy; and an update to the Company's 2006 Edna
May Gold Project Feasibility Study is on schedule to be tabled to the Board in
the December quarter 2008. In preparation for planned production at Edna
May, the Company relocated its 2.8mtpa Big Bell mill to site in 2007. The
mill is being maintained 'ready for construction' adjacent to the proposed
plant construction site.
is pursuing parallel growth with a renewed exploration programme underway of
its 880km? of under-explored Westonia Greenstone Belt, and is reviewing other
regional opportunities for acquisition and/or joint venture. In particular,
Catalpa seeks to identify and develop new projects and/or acquisitions on its
extensive land holding or within the region, which is prospective for gold,
nickel and base metals.
has a sound Resource base at Edna May with significant upside to grow resources
and reserves and move towards production. With a buoyant outlook on the gold
price, the Company's Board believes that Catalpa Resources presents a sound
investment opportunity with significant upside potential.
Resources has adopted best practice standards across all its operating
activities, including its social, health and safety, environmental management
and corporate governance functions.
Level 3, 28
Kings Park Road, WEST PERTH
Ph: 08 9485 1254 Fax: 08 6263 0455