Minotaur Exploration Ltd247 Greenhill Road, Dulwich 5065, South...

Minotaur Exploration Ltd
247 Greenhill Road, Dulwich 5065, South Australia
Tel: +61 8 8366 6000 Fax: +61 8 8366 6001
Website www.minotaurexploration.com.au
Email [email protected]
A.C.N. 108 483 601
Share Placement
Minotaur Exploration Limited (ASX Code MEP) is pleased to announce a share placement of 8,450,000 ordinary fully paid shares at $0.63 per share to raise $5,323,500 before expenses.
The placement was co-managed by Taylor Collison Limited and Austock Corporate Finance Limited and was strongly supported by two of the Company’s major shareholders, Oxiana Ltd and Sempra Metals and Concentrates Corp. together with a select group of overseas institutional investors.
The funds raised will be used towards the assessment of the Tunkillia Gold Prospect in South Australia and for the Company’s exploration effort in the surrounding areas. Tunkillia has a resource of 720,000 ounces of gold at a grade of 2.2g/t. The Company is earning a 51% interest in the project from joint venture partner Helix Resources Ltd whose scoping studies in 2002 were completed at a gold price of A$550/ounce, compared with today’s price of greater than A$800. Clearly the economics of the deposit have changed and the Company has committed $2m to a drill-out of the resource and surrounding area. Total earn-in cost is $5m.
In accordance with ASX Listing Rule 3.10.3, the Company provides the following details of the placement shares:-
Class of Securities : Fully paid ordinary shares.
Number to be Issued : 8,450,000
Principal Terms of Securities : The shares will carry standard rights applicable to quoted ordinary shares in the Company and will, from the date of issue, rank equally with fully paid quoted ordinary shares currently on issue.
Issue Price : $0.63 per share.
Purpose of Issue : To raise working capital for exploration.
Shareholder Approval : The Company will not seek shareholder approval prior to the issue of the 8,450,000 placement shares, as approval for this issue is not required by the Listing Rules. The Company intends to subsequently seek approval of this issue at a general meeting pursuant to Listing Rule 7.4 (subsequent approval of issue of securities).
Issue to Class : The issue is not being made to a class of security holders.
As the issue will be to sophisticated or professional investors, it will not require disclosure under the Corporations Act.
For further information please contact:
Mr Rob Annells / Mr Derek Carter
Chairman / Managing Director
Minotaur Exploration Limited
Ph: (08) 8366 6000
8 June 2006