Auzex Rights Issue Participation (2249S)
17 Novembre 2011 - 8:00AM
UK Regulatory
TIDMGGG
RNS Number : 2249S
GGG Resources PLC
17 November 2011
GGG Resources
(the "Company" or "GGG")
GGG Resources subscribes for full entitlement in Auzex Resources
Limited Rights Issue
GGG Resources (AIM: GGG, ASX: GGB) has increased its
shareholding in Auzex Resources Limited (Auzex), its Joint Venture
partner at the Bullabulling Gold Project, a former open pit gold
mine in the Coolgardie Goldfields of Western Australia.
On 17 October 2011 Auzex Resources announced an underwritten 1
for 5 rights issue raising $4.6m. GGG has today subscribed for its
full entitlement of 1.6 million ordinary shares at 24 cents per
share.
Upon completion of the rights issue, expected to close on 5
December 2011, the Company will own 9.6 million shares in Auzex
representing approximately 7.5% of its enlarged share capital,
making GGG the second largest shareholder of Auzex.
The Auzex rights issue represents the completion of an A$8m
capital raising by Auzex comprising a A$3.4m placing, completed on
17 October 2011, and a A$4.6m underwritten rights issue. The funds
will be used to fund Auzex's share of Joint Venture expenditure in
relation to the Bullabulling Gold Project, transactions costs of
the merger with GGG, including the demerger of the non-Bullabulling
assets held by Auzex, and general working capital. The board of GGG
took the decision to subscribe for its maximum entitlement under
the rights issue in light of the excellent progress made by the
Joint Venture since the agreed merger of Bullabulling asset. GGG
continues to work closely with Auzex in the interest of all
stakeholders in the Bullabulling Gold Project. The agreed merger is
expected to complete during Q1 2012.
Recent developments include:
Highly encouraging results (announced 14 November 2011) from an
initial metallurgical programme, confirming that the Project has
excellent recoveries at head grades of under 1.0g/t Au, with the
master composite producing gold recoveries exceeding 90%.
Increased confidence in the Bullabulling Gold Project following
the latest Phase Two drill results (announced 10 November 2011).
Out of 57,657m of a planned 70,000m drill programme, approximately
99% of the drill holes have encountered gold mineralisation, with
drilling regularly intersecting higher gold grades within a broad
low grade halo.
The Joint Venture expectsto move a significant portion of the
current 2.6 million ounces of JORC compliant resources, which
included 710,000 ounces in the indicated category (see 15 August
2011 announcement), from inferred resources to indicated resources.
The next JORC upgrade is due Q1 2012.
Further progress towards the merger, follows the announcement by
Auzex (11 November 2011) that it has published its Demerger Scheme
Booklet and established Auzex Exploration Limited, a new corporate
entity that will own its proposed demerged non-Bullabulling assets.
Auzex Exploration Limited is expected to hold Auzex's
non-Bullabulling assets and 7,7022,742 GGG shares currently held by
Auzex.
Contacts:
Dr. Jeffrey Malaihollo Westhouse Securities Limited (UK Nominated
MD, GGG Resources plc (UK) Adviser)
Tel: + 44 1992 531820 Tom Price / Martin Davison
Email: www.gggresources.com Tel: + 44 20 7601 6100
------------------------------- -------------------------------------------
Neil Boom Collins Stewart Europe Limited (Broker)
MD, Gresham PR Ltd (UK). John Prior / Adam Miller
Tel: + 44 7866 805 108 Tel: + 44 20 7523 8350
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David McArthur David Brook
GGG Resources plc (Australia) Professional Public Relations (Australia
41 Stirling Highway media)
Nedlands, WA 6009 T: +61 8 9388 0944/ +61 433 112 936
Australia E: david.brook@ppr.com.au
Tel: +61 8 9423 3200
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This information is provided by RNS
The company news service from the London Stock Exchange
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