Successful completion of A$7.5m capital raising
July 29, 2010
Reed completes Placement to institutional and sophisticated investors raising A$7.5 million, following closure of oversubscribed book build.
Funds raised to:
- Accelerate assessment of Lithium Carbonate downstream processing and by-product production
- Complete scoping studies for expansion and optimisation of the Barrambie Vanadium Study
- Complete detailed engineering for the refurbishment of the Nimbus Processing plant
- Drill test extensions and parallel repetitions of the Sand George lodes at the Comet Vale Gold Project
Patersons Securities Limited acted as Lead Manager to the Placement.
Australian diversified resources company Reed Resources Ltd (ASX: RDR) (the “Company” or “Reed”), is pleased to announce it has placed 15 million fully paid ordinary shares at 50 cents per share raising A$7.5 million before costs (“Placement”).
Patersons Securities Limited as Lead Manager to the Placement.
The Proceeds from the Placement will primarily be used to for the following programs:
Mount Marion Lithium
Test work to enable rapid assessment of the down streaming opportunities for lithium concentrates from Mt Marion in the goldfields region of Western Australia.
Barrambie Scoping Studies
The engagement of consultants to complete scoping studies to both expand the production rate from its Barrambie Vanadium project and undertake preliminary feasibility on a Ferrovanadium conversion circuit particularly in Malaysia.
Nimbus processing plant conversion and refurbishment
Preliminary operating and capital cost engineering analysis for the conversion and refurbishment of the Nimbus processing plant.
Drill testing of extensions and parallel repetitions at Comet Vale Gold Project
A drill program to test for high-grade gold mineralisation in an adjacent, parallel structure to the Sand George lodes which have been mined over the last three years.
“This raising will position the Company well for its working capital needs for 2010/11 to materially develop and scale up its various projects to the next stages of their development” said Chris Reed Managing Director of Reed Resources Ltd.
The Placement was made without a prospectus or other disclosure document to institutions and sophisticated investors under section 708 of the Corporations Act. It is contemplated that a “cleansing notice” under Section 708A (5) (e) of the Corporations Act will be given to the ASX immediately following the issue of the shares.
The updated corporate presentation can be downloaded here or viewed below.