announcment

10 November 2010
GOLD ANOMALY RAISES $2.3M VIA PLACEMENT
Funds raised to expand maiden drilling program at potential world class gold asset
Gold Anomaly enters LOI enabling increasing potential near term ownership to 90% of Crater Mountain
Gold Anomaly Limited (ASX: GOA) (?Gold Anomaly? or ?the Company?) is pleased to announce that it will raise $2.3 million by way of a placement to various professional and sophisticated investors through several broking firms. Allocations have been made to brokers and receipt of placement funds is being finalised.
The capital raised will provide funds for a more aggressive drilling program at the Crater Mountain project in PNG, as well as for working capital.
Crater Mountain, a former BHP tier-1 prospect, consists of three contiguous exploration licences spanning some 300km2 in the highlands of Papua New Guinea. Four areas of gold mineralisation have been identified, of which the most advanced, the Nevera prospect, will be the initial focus of the drilling program.
Commenting on the raising, Gold Anomaly?s Executive Chairman Mr Greg Starr said, ?This is an exciting time for the Company, as we are set to commence our maiden drilling program at our flagship project. Given the support in the market for this program, we are now able to expand drilling from the initially planned 1500 metres to 2500 metres as a result of the placement.
?Director and Exploration Manager Mr Peter Macnab is leading the program. Given that Peter has played key roles in the discovery of major deposits totaling in excess of 100Moz gold equivalent throughout PNG we certainly believe that our drilling program is in very good hands.?
Under the placement, 76,666,665 shares will be issued at $0.03 (3 cents) per share as well as approximately 25,555,555 free attaching GOAOA listed options (exercisable@$0.03; expiring 30 June 2012). The price of the placement was negotiated based on the VWAP of the previous month?s trading.
Gold Anomaly set to increase interest in Crater Mountain
The Crater Mountain Project is governed by a Joint Venture Agreement between a Gold Anomaly subsidiary (which owns 51%) and a group of three shareholders collectively called the ?Minority Partners?.
Gold Anomaly is in the process of confirming with the Minority Partners that through its expenditure of $900,000 it has met the conditions required to increase its interest in Crater Mountain from 51% to 70%. Once confirmed, this increase stake will be registered with the appropriate authorities.
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The Company is now pleased to announce that one minority partner, New Guinea Gold Limited (NGG) has signed a Letter of Intent (LOI) whereby Gold Anomaly will acquire NGG?s interest in Crater Mountain in exchange for 31,250,000 GOA shares.
By acquiring this stake and undertaking the upcoming drilling program, Gold Anomaly would have the ability to potentially own 90% of the Crater Mountain Project. This assumes the remaining Minority Partners do not participate in future exploration exploration and expenditure. They are currently considering their position.
?Given that Gold Anomaly is project manager of Crater Mountain, a consolidation of the ownership of the Project in exchange for shares makes a lot of sense for both parties. The simplified project structure will enable more streamlined management and administration functions, and assist in expediting project development,? Mr Starr noted.