UXA Resources (ASX: UXA) has issued 5.15 million shares to La Jolla Cove following the initial drawdown of funds from a $2.5 million convertible note facility last month.
On October 7, UXA drew down the first payment of $250,000 from a $1 million convertible note.
The shares issued today are valued at a consideration of $50,000.
The issue and conversion of the second note is subject to UXA receiving shareholder approval at its annual general meeting on November 30, 2011.
La Jolla has issued two convertible notes totalling $2.5 million to fund exploration activities at the company’s active projects.
Company activities
UXA is active in New South Wales, with the Dome 5 lead-zinc-silver project, in the Northern Territory with the Nabarlek North uranium project and in Western Australia, with the Myroodah and Mudjalla uranium projects.
Phase 2 drilling at Dome 5, including infill and step out drilling over 2,800 metres, is planned to begin before the end of the December quarter.
The eight hole program will target a 500 metre wide zone of high grade intercepts and explore the possible northwest and southeast extensions of this zone.
At Nabarlek North, Phase 2 drilling is planned to follow up on strongly anomalous uranium results from the first phase of drilling.
This program will also target anomalies generated by a radon cup survey.