The latest 3b report indicates that a series of share options have been converted to ordinary shares and an extra $820,000 has been raised to add to the $10.8m rights issue. Haddington will now have plenty of cash to reclaim 30% of Mt Webber, continue with Mt Webber development AND continue to explore exciting Uranium and Lithium prospects over the next 12-18 months.
The exploration expenses at Mt Webber were just over $2m for a lot of drilling and tons. For every $1m spent now at Mt Webber Haddington will have to pay/contribute $300,000 or 30%. This is not too onerous and will add serious tonnage to project.
The Lithium results announced on 9 October 2009 are very interesting as they cover an area in excess of 700m. So Haddington has an exciting lithium project to drill.
As previuosly mentioned HDN will have plenty of cash to follow up exploration targets until the Baline garnet project comes on stream and begins to earn cash in 18 months time.
The management did well to pitch the rights issue at 17c so as to attract option conversion. Theres now a good chance that cash will get through to baline cash flow.
This story continues to get better
HDN Price at posting:
27.0¢ Sentiment: None Disclosure: Not Held
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