ASX/MEDIA RELEASE 12 April 2007Placement to raise $58.4...

ASX/MEDIA RELEASE 12 April 2007
Placement to raise $58.4 million
The directors of Jabiru Metals Limited (“Jabiru” “the Company”) advise that the Company has resolved to raise up to approximately $58.4 million through the issue of up to 55,580,759 shares at an issue price of $1.05 per share, to predominately international and domestic institutional clients of Hartleys Limited.
The monies raised provide Jabiru with the opportunity to:
•
pay off the ANZ Bank/Consolidated Minerals Limited debt facility and establish a replacement facility;
•
continued exploration of the Teutonic Bore Exploration Project; and
•
fast-track exploration and feasibility of the Benambra Project subject to the granting of the exploration licence for the Benambra Project by the Victorian Government to Jabiru as announced to ASX on 5 April 2007.
Jabiru Managing Director Mr Gary Comb said “this capital raising places Jabiru in a very strong financial position leading up to the commencement of commissioning of the Jaguar project and will allow cashflow from Jaguar to continue the fast-track of exploration and development efforts”.
The placement of new shares will be undertaken pursuant to ASX Listing Rule 7.1.


OK, so what do they mean by establishing a "replacement facility"? Replacement for what?

The ANZ loan facility was going to be repaid from cashflow, which was only a couple of months down the track. So has the money just raised been spent already?

People I know that looked at Benambra walked away.
And these guys were successful at all their other ventures. I would have preferred to see Jaguar up & running with a healthy cashflow before they started "empire building". Maybe I'm too conservative, dunno.
If all returns from Jaguar go to Benambra and that turns out to be a dog, JML will become a dog. I invested in PIL/JML because of my faith in Jaguar and its surrounds, not to do battle with the Victorian beaurocrats & greenies. They play hardball.
Now you read that for environmental reasons all benambra ore will probably have to be treated offsite.
That was a condition. But they dont say how far offsite, do they? So the ore will have to be transported for processing - 20km? 200km? lol. No one has said.
Too much money being burnt too quicky, with Plan "A" not yet in place.
Cant say I'm happy with this premature empirebuilding.

Oh, and MC old mate, when you say what a wonderful job the board has done, keep in mind it was John Davis of PIL who had the foresight and inspiration to buy the Jaguar tenements from Canadian Inmet. Without his actions we would be a languishing penny dreadful or worse. John is currently with MON, but deserves credit for his achievements while at the helm of PIL/JML at the very least for getting us the Jaguar orebody.


GZ