issued throughFIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222...

issued through
FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
231 South Road, MILE END SA 5031
Ph: 08 8234 9555 Fax: 08 8234 9566
[email protected]
N E W S
• R E L E A S E •
FOR IMMEDIATE RELEASE
Monday 3 March 23008
FLINDERS TO RAISE $14.6M FOR NEW WA IRON ORE
AND SA DIAMOND EXPLORATION
A $14.6 million capital raising has been announced by Flinders Diamonds Limited
(ASX: "FDL") as part of a series of developments to better reflect the changing
profile of the Company's Australian iron ore and diamond exploration portfolio.
Funds raised will be used primarily to drive a maiden drilling program by mid year on
the Company's Hamersley iron ore prospect located in the Pilbara Region of
Western Australia.
Under a series of initiatives, Flinders Diamonds today announced:
• An A$11 million capital raising through a share placement
• $3.6 million to be raised via a Share Purchase Plan (SPP) offer to existing
shareholders
• Name change to Flinders Mines Limited.
The successful $11 million raising has been achieved through the placement to
sophisticated and professional investors of 110 million ordinary shares in Flinders
Diamonds at an issue price of A$0.10 per share.
The Sydney Office of Bell Potter acted as Lead Manager to the issue.
This takes the total number of ordinary shares on issue in Flinders Diamonds to
1084 million.
Flinders Diamonds has also announced plans to raise an additional $3.61 million
through a Share Purchase Plan (SPP) – full details of which will be released shortly.
The proposed SPP will allocate up to 20,000 additional new FDL shares available at
10 cents per share to eligible shareholders.
Funds for Hamersley iron ore project
Flinders Diamonds’ Managing Director, Dr Kevin Wills, said the capital raising
followed the recent emergence of the Company’s highly promising WA iron ore
issued through
FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
231 South Road, MILE END SA 5031
Ph: 08 8234 9555 Fax: 08 8234 9566
[email protected]
targets in its wholly owned E47/882 tenement in the Hamersley Ranges and the
significance of these targets in relation to other industry projects in the area.
Flinders’ Pilbara iron ore target is sandwiched between recent Rio Tinto and
Fortescue Metals Group iron ore discoveries, with Flinders now planning a four to
six month drilling campaign to assess the target.
The Company made the decision to drill after new information that indicated the
newly discovered Rio and FMG mineralisation continues into Flinders Diamonds’
Hamersley project area.
A recently-announced Rio discovery, Caliwingina North, is immediately to the north
of Flinders’ Hamersley project while the FMG discoveries, Serenity and Solomon,
abut and lie close to the southeast perimeter of E47/882.
“The new discoveries are major Channel Iron Deposits (CID) and as we are located
between them, they quite clearly enhance the prospectivity of our target,” Dr Wills
said.
“As iron ore prices have recently increased, today’s funding initiative is designed to
focus urgent exploration activity on the Hamersley project which already is
estimated to contain an iron ore target of between 325-390 million tonnes of iron
ore.
Ongoing diamond exploration
Dr Wills said the recent emphasis by the market on the Company and its WA iron
ore project should in no way be taken to diminish Flinders’ determination to discover
a major new Australian diamond deposit.
“In fact, we have just completed two major helimag surveys over some of our
prospects in the mid north of South Australia and we are now working on analysis of
this data,” Dr Wills said.
“That survey is in addition to our recent expansion of other South Australian
activities onto Flinders Island and the Gawler Craton,” he said.
Name Change to Flinders Mines
Shareholders will also be advised shortly of full details for a general meeting to be
held in April to include as a key item, a proposed change of name for the Company
from Flinders Diamonds to Flinders Mines – to better reflect its broadening scope of
exploration commodities.
MEDIA CONTACTS:
Dr Kevin Wills Flinders Diamonds Limited 0419 850 997
Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631
Duncan Gordon Investor Relations (08) 8232 8800