northwest to tap 5.5m from holders

Northwest to tap $5.5m from holders


Tuesday, 14 November 2006

JUNIOR explorer Northwest Resources is seeking to raise $A5.5 million through a non-renounceable rights issue, with the funds earmarked for the company's developing Nullagine gold project where earlier this month, a maiden resource of 250,000oz was unveiled.


In a market release this morning, Northwest said Delta Securities would act as the lead broker in the offer, which will allow shareholders to subscribe for one new share for every three shares held at an issue price of 31c per share.

The issue will also see one free listed option issued, exercisable at 20c, for every two new shares. Northwest shares gained 2.5c (7.4%) in morning trade to 36.5c.

The company's two main focus areas in the Nullagine gold field in the Pilbara region of Western Australia are the Blue Spec Shear and Camel Creek projects.

Blue Spec Shear, comprised of both the Blue Spec and Golden Spec deposits, hosts a high-grade inferred resource of 190,000oz of gold at 47 grams per tonne. The four deposits at Camel Creek host around 50,000oz.

The company expects to upgrade the size and confidence level of its resources early next year, at which time the parameters for feasibility studies will be considered.

Northwest has previously stated it is targeting a 60,000oz per annum operation.

Northwest listed on the Australian Stock Exchange in December 2004 after an oversubscribed capital raising of $2.25 million from the issue of 11.25 million shares at 20c.