Avonlea Minerals raises A$1.5m for vanadium exploration in...

Avonlea Minerals raises A$1.5m for vanadium exploration in Namibia
Friday, September 23, 2011
Avonlea Minerals raises A$1.5m for vanadium exploration in Namibia

Avonlea Minerals (ASX: AVZ) will raise $1.5 million through a placement of 18.75 million shares at $0.08 per share to advance exploration programs in Namibia.

Funding will be used for a Resource upgrade at the Ondjou iron ore project and accelerated exploration activity over pre-defined targets at the Abenab Vanadium mine area and other REE prospects. The program is scheduled to commence in October.

The placement will occur in two tranches. Tranche 1 involves 10 million shares at $0.08 to raise $800,000.

Tranche 2 comprises 8.75 million shares at $0.08 to raise a further $700,000 and will be issued subject to shareholder approval at the company’s general meeting of shareholders to be held early November 2011.

David Riekie, Avonlea’s managing director, said “we consider this is a strong endorsement to the significant growth potential of our expanding iron ore asset base, exploration upside and the near term production potential of our speciality minerals within our licence portfolio.”

Avonlea has also appointed David Macoboy as non-executive chairman.