Focus Minerals Limited (ASX: FML)
FOCUS COMPLETES SETTLEMENT OF JV ACQUISITION
$18.65m DEBT FACILITY AND $18m PLACEMENT & SHARE PURCHASE PLAN
Focus finalises acquisition of Committee Bay Resources’ 50% interest in the
Coolgardie Gold Project, Western Australia
Completion of a share placement to sophisticated
investors to raise a total of A$14 million - via the issue of 254.5 million
shares at 5.5 cents per share
Successful completion of A$4m Share Purchase plan
(SPP) via the issue of 72.7 million ordinary shares at an issue price of 5.5c
A$18.65 million Senior and Mezzanine debt facility
finalised with Investec Bank (Australia) Ltd with first drawdown completed
gold and nickel company Focus Minerals Ltd (ASX: FML) is pleased to
announce that it has completed the acquisition of Canadian Joint Venture partner Committee Bay
Resources’ 50% interest in the Coolgardie Gold Project, Western
The settlement, which occurred
on April 30, gives Focus 100% ownership of the former Redemption Joint Venture assets
at Coolgardie, including an extensive resource inventory within multiple
deposits totaling 20.6 million tonnes at 2.48g/t Au for 1.65 million ounces,
the fully permitted 1.2mtpa Three Mile Hill gold processing facility (currently
on care and maintenance), and a highly prospective 210km2 tenement
package offering an outstanding pipeline of exploration and development
The settlement was effected
with the payment to Committee Bay of A$19 million in cash, the
allocation of 140 million Focus Minerals shares and A$2.0M deferred until 30
April 2009 in the form of an 8.25% Convertible Note.
Additionally, Focus has
finalised the A$14m placement to professional investors, a A$4m Share Purchase
Plan (SPP) and an $A18.65m debt facility – with the first drawdown
executed yesterday - provided by Investec Bank (Australia) Ltd. These initiatives
have supported the acquisition and will also provide additional working capital
to underpin the Company’s accelerated development strategy in both gold
The completion of a share
placement to sophisticated investors to raise a total of A$14 million - via
the issue of 254.5 million shares at 5.5 cents per share has now been
completed and shares issued after being approved by shareholders at a meeting
held on April 14. The placement was managed by Perth-based investment bank,
Share Purchase Plan
Although undersubscribed, Focus has successfully completed the issue of 72.7
million ordinary shares at an issue price of 5.5c to raise a total of A$4m as
part of a Share Purchase Plan (SPP) which was open to existing shareholders.
The shortfall totaling $907,500 for 16,500,000 shares at 5.5 cents per share
was placed with professional investors.
The Company has established a debt facility
totaling A$18.65 million Senior and Mezzanine debt with specialist
international banking group, Investec Bank (Australia) Ltd. Under the terms of
the facility agreement, Focus has hedged a total of 32,000 ounces at an average
gold price of approximately A$990 per ounce. In addition, Focus has acquired
put options for a total of 17,000 ounces of gold at A$850/oz to further protect
Perseverance Gold Project revenues.
The Company has
completed an initial drawdown under the facility to provide working capital for
the development and mining operations at the Perseverance Gold Project.
As part of the debt
facility the Company has issued 40 million call options to Investec to acquire
shares in the Company at an exercise price of 6.85c at Investec’s behest
at any time prior to the expiry date on 30 April 2011.
The Board welcomes
the support of Investec in providing a debt facility to develop the
Perseverance gold project and the Company’s broader objectives in
achieving the “Two Goals – One Focus” strategy.
Further to the
announcement of commencement of initial gold production on 29 April 2008, the
Company has delivered a total of 3,400 ounces of gold to the end of April 2008.
The initial campaign treatment of Perseverance ore has now been completed and
the Company looks forward to the next treatment campaign towards the end of May
Nicholas Read/Jason Cunningham
Don Taig, Chairman
Peter Williams, Managing
Focus Minerals Ltd
Telephone: (+61-8) 9388-1474
INFORMATION – FOCUS MINERALS LTD
Focus Minerals Ltd
(ASX: FML) is an Australian-based exploration and development group
whose focus is to become a significant gold and nickel producer in the
Coolgardie-Kalgoorlie-Widgiemooltha region of Western Australia.
Focus Minerals is
the largest landholder in the Coolgardie Gold Belt located in Western
Australia, 560km east of Perth and 35km west of the ‘Super Pit’ in
Kalgoorlie-Boulder. More than 2.6 million ounces of gold has been produced from
the Coolgardie gold belt alone since 1892. Focus holds the mineral rights to
more than 210sq km of tenements including Measured, Indicated and Inferred
Resources exceeding 1.65 million ounces of gold as well as the 1.2mtpa Three
Mile Hill processing plant.
Focus Minerals is
also fast tracking development of its wholly-owned Nepean Nickel Project
(current estimated resource totaling 591,300t @ 2.2% Ni) located 25km south of
Coolgardie. Focus has a view of recommencing mining operations from the
historic production centre in 2008.
T: (+61-8) 9388-1474 | F: (+61-8)
9388-1472 | E: email@example.com | Web: www.readcorporate.com.au
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