Burdekin Pacific Limited ASX Announcement – 24 February...

Burdekin Pacific Limited ASX Announcement – 24 February 2005
Burdekin Pacific Limited A.C.N. 059 329 519
Level 13, BGC Centre 28 The Esplanade Perth WA 6000
Phone: +61 8 9322 6045 Fax: +61 8 9481 5557
Email: [email protected]
Date: 24 February 2005

Placement Oversubscribed; Additional Placement of Shares
The Company is pleased to announce that the Placement Offer under the 10 February 2005 Prospectus has been substantially oversubscribed. This means that the Company has raised the funds required to meet the key condition precedent under the $3.0 million loan facility to be provided by Macquarie Bank Limited (‘Macquarie”) for the refinancing of a $3.5 million debt to Zedex Minerals Limited (assignee of Ocean Resources Capital Holdings plc) at maturity at the end of February 2005.
A number of procedural conditions precedent under the Macquarie facility are in the process of being documented in time to allow for completion and drawdown of the Macquarie facility within the agreed terms.

Additional Placement
In order to meet the key conditions precedent under the Macquarie facility the Company is obliged to deal with applications pursuant to the Prospectus dated 10 February 2005 (“Original Prospectus”) on a first moneys in basis.
Accordingly, notwithstanding the high level of interest, particularly from existing shareholders, the Company is unable to accept all applications pursuant to the Original Prospectus.
The Directors of the Company have accordingly resolved to lodge a Supplementary Prospectus increasing the number of shares offered from 64,000,000 shares to 128,000,000 shares.
The shares offered pursuant to the Supplementary Prospectus will raise an additional $864,000 before issue costs if fully subscribed. Accordingly, the amount to be raised under the offer is now a total of up to $1,728,000 before issue costs.
Applicants under the Original Prospectus who did not receive an allotment of shares will be entitled to either seek a return of their application funds or otherwise their application will
be dealt with as an application under the Supplementary Prospectus.

Applicants in this category will be issued a copy of the Supplementary Prospectus and given an
opportunity to consider the Supplementary Prospectus.
As the additional shares offered pursuant to the Supplementary Prospectus exceed the Company’s 15% placement capacity under ASX Listing Rules shareholders will be asked to consider the issue of the additional shares and other matters at a shareholder’s meeting to be held in early April.
The offer price is equivalent to a discount of approximately 15% to the weighted average market price in the past five trading days.

Shareholder Participation in Placement
Although shareholders do not have a pro-rata entitlement to shares being offered under the Supplementary Prospectus, shareholders wishing to participate in the Offer are invited to contact the Company for a copy of both the Original and Supplementary Prospectuses.
Yours faithfully
Burdekin Pacific Limited
Jerome G Vitale
Managing Director

More problems disappearing.
Great stuff.
In my opinion, we may have to suffer some short term dilutionary effects, unless the market re-rates the company. The current market cap is extremely low. The share price is a bargain.

Constructive comments & discussion please.
I hold bks
Always seek professional investment advice before investing & please read below.