GGG Resources raises A$9m for Bullabulling gold project, applies...

GGG Resources raises A$9m for Bullabulling gold project, applies for ASX listing
Tuesday, January 25, 2011 by Sergei Balashov

(LON:GGG, ASX:GGB) has raised A$9 million in an oversubscribed placing and has applied for its secondary listing on the Australian Securities Exchange (ASX).

The company?s primary asset is the Bullabulling gold joint venture project in Western Australia. A three-rig resource drilling programme is currently underway.

The offer under the prospectus, which was lodged on 10 January 2011, is now closed, having resulted in the issue of 22.5 million shares in GGG at a price of A$0.40 per share.

This means that upon listing on the ASX, GGG will have approximately A$23 million in cash and an 8.5% interest in its JV partner Auzex Resources (ASX:AZX), which owns the other 50% of Bullabulling.

The funds raised will be used to further advance GGG's 50% interest in the Bullabulling project and towards additional exploration, the group said.

The placing is conditional upon admission to the ASX.

The company will shortly advise when admission to the ASX will take place.

Just a couple of weeks ago, GGG revealed another set of strong drilling results from Bullabulling.

It intersected gold mineralisation in 58 of the 59 drill holes that were included in the results, which covered 18,000 metres of drilling.

GGG then said that so far the drilling results had improved management's confidence in the current resource model as well as the historic data and that it was on track for an updated and upgraded JORC resource estimate in the second quarter of 2011.

Around a third of the results showed greater grades or widths than Bullabulling?s historic results, while new zones have been found, which accounted for about a quarter of the results.

The new zones included grades between 2.1 and 152 grams per tonne gold with widths ranging from 1 metre to 39 metres.

GGG and Auzex plan to start production in Q3 2013, at a rate of 100,000 ounces of gold per year.

Late last year, Westhouse Securities analyst Mark Heyhoe said that Bullabulling?s resource may have doubled in size by then.

Heyhoe emphasised that with a resource upgrade and reclassification due in H1 2011 and a full feasibility study expected in Q4, "2011 looks like being another great year for GGG resources."


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