GLENGARRY RESOURCES LIMITED ABN 40 009 468 099Telephone: (08)...

GLENGARRY RESOURCES LIMITED ABN 40 009 468 099
Telephone: (08) 9322 4929 Facsimile: (08) 9322 5510
PO Box 975, West Perth, WA 6872 - 35 Havelock Street, West Perth, WA 6005
Website: www.glengarry.com.au - Email: [email protected]
3 August 2007
ASX RELEASE
SHARE PLACEMENT TO KAGARA ZINC LTD
The Directors of Glengarry Resources Limited (Glengarry or the Company) are pleased to
announce that Kagara Zinc Ltd (Kagara) has agreed to subscribe to 35,000,000 Glengarry
shares at 12.5 cents per share to raise $4,375,000. The subscription price is at a premium to
Glengarry’s current share price.
The Kagara placement will represent 12.3% of Glengarry’s expanded, undiluted share capital
and the shares will be escrowed for 12 months from the date of issue. There are no other
conditions related to the placement and the securities will be issued immediately under the
Company’s 15% placement capacity.
A significant portion of the funds raised will be used to fast track resource definition and
related activities at the Maitland copper-molybdenum deposit where recent drilling has
confirmed the continuity of high grade mineralisation. The Maitland deposit occurs within
Glengarry’s wholly-owned Greenvale Project located in North Queensland. Kagara is
currently mining high-grade copper, zinc and lead mineralisation at Balcooma located
approximately 37 kilometres northeast of Maitland (Figure 1). Previous metallurgical test
work and preliminary scoping studies completed by independent consultants indicate good
potential to profitably truck ore from Maitland to a third party mill.
The additional funding increases Glengarry’s total cash and tangible investments to
approximately $10,000,000 and allows the Company to aggressively expand exploration
efforts on its other Australian Projects which are prospective for stand alone base metal, gold
and uranium deposits. All of the Projects are located in well mineralised provinces and in
close proximity to world class mineral deposits.
Kagara has undertaken to assist Glengarry with logistical aspects of ongoing exploration and
resource assessment work at Maitland and drilling will recommence at the deposit as soon
as appropriate drill rigs can be secured.
David Richards
Managing Director
Declaration
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by
David Richards who is a member of the Australian Institute of Geoscientists. David Richards is a full time employee of Glengarry Resources
Limited. David Richards has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves. David Richards consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.
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Figure 1: Greenvale Project