All good news and interesting article in AMN Mine Box yesterday 4/7/07:
View to raise $30m as growth continues
View Resources aims to raise a total of $30m by way of an institutional placement to be effected in two tranches and a retail offer.
The company will raise $26m by issuing 65 million shares at $0.40 in a placement to institutions and sophisticated investors both in Australia and overseas as it continues its growth and accelerates the development of its Bronzewing and Carnilya Hill projects.
The institutional placement has been over-subscribed and strongly supported by current major shareholders, including the IMC Group and Lion Selection Limited.
View will issue the placement shares in two tranches, the first tranche raising approximately $13.9m and the second tranche raising approximately $12.1m, subject to share holder approval at the company’s general meeting, scheduled for August 6, 2007.
View will, subject to shareholder approval, offer up to 10 million additional shares at $0.40 to raise a further $4m under similar terms, to retail and other investors, giving existing shareholders the opportunity to participate as the company completes the $30m raising.
According to View, the funds raised under the retail offer will be used to support the company’s short-term capital requirements as it moves towards positive cash flow and dual income from both gold and nickel by the first half of 2008.
The funds raised under the institutional placement will be used for development and working capital for the Carnilya Hill mine, scheduled to start this month, and development and working capital for Bronzewing, which includes further pre-stripping of the Central pit and access development of the Discovery underground, accessing additional reserves.
The funds will also enable further exploration and tenement acquisition at Bronzewing.
View Resources Managing Director, Tim Gooch said the quick transition from explorer to producer at both Bronzewing and Carnilya Hill was extremely exciting for the company, providing a spring board as View progresses towards becoming a mid-tier mining house.
“These funds will allow the company to meet its short-term capital commitments as we recommission our gold and nickel projects in parallel and provide further funds for future exploration and regional consolidation,” Mr Gooch said.
“By the first half of 2008 View will be deriving positive cash-flow from both projects, however we are already looking to increase mine life at Bronzewing and Carnilya Hill as well as seek other growth opportunities,” he said.
- 04 Jul 2007
VRE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
