www.auzex.com
Auzex Resources (ASX:AZX) major project is the 50%-owned Bullabulling gold project, located 65km from Kalgoorlie in Western Australia. The project area has a proven history of discovery and new exploration techniques are leading to new discoveries.
Auzex Resources to raise up to A$8m to develop Bullabulling gold project
Auzex Resources (ASX: AZX) has raised $A3.4 million through the placement of about 14.3 million shares at A$0.24 to accelerate the development of the Bullabulling gold project through to completion of its merger with GGG Resources plc (ASX: GGB; AIM: GGG).
The merger will combine the 2.6 million ounce Bullabulling Gold project, (previously a 50:50 joint venture), under a single corporate entity to be named Bullabulling Gold, expected to be completed by February 2012.
Auzex also intends to raise up to about A$4.6 million via a one for five renounceable rights issue. Pursuant to the rights issue the company will issue up to about 19 million shares at $0.24.
The company intends for the rights issue to be underwritten and for a major shareholder to participate in the placement and rights issue.
Auzex is currently in a very interesting phase of its development, and is currently on track to complete phase two infill drilling at the Bullabulling Gold Project by December. The company expects results to add further to the JORC Resource of 2.6 million gold ounces.
John Lawton, Auzex's managing director, said "the project is at an exciting time with resource drilling continuing to deliver results above those predicted by the resource model and the details of the scoping study are currently being finalised for release in the next few weeks.”
Auzex will have fully paid issue capital of 128.5 million shares following the placement and rights issue.
The placement was made to institutional and sophisticated domestic and international clients of BBY Limited.
