Pluton Resources Limited Completes A$13.3m Placement
01.11.2010 | ABN Newswire
10:26 AEST Nov 1, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.Melbourne, Australia (ABN Newswire) - Pluton Resources Limited (ASX: PLV) announced today that it has successfully completed a placement of 23,407,482 shares to raise gross proceeds of A$13.3m.
The price of A$0.57 per share represented an 11.6% discount to the last traded price for Pluton shares.
The Placement received strong support from both existing shareholders and new investors and closed substantially oversubscribed. This resulted in the introduction of a number of new institutional shareholders to Pluton's register, both domestic and offshore.
Investec Bank (Australia) Limited and Austock Securities Limited acted as joint lead managers in relation to the Placement.
Use of funds
Net funds raised under the Placement will be used to provide funding for:
- completion of the Pre-Feasibility Study (PFS) for the Irvine Island Project which is expected to be completed by the end of March 2011;
- continued exploration at Irvine Island, including the Hardstaff Peninsula and the Isthmus; and
- working capital.
Dependant on the results of the PFS, it is Pluton's intention to move into a Definitive Feasibility Study expected to be completed by the end of calendar year 2011 which will require additional funding. The total capital cost for the project as per the 2009 AMC Concept Study is currently estimated to be approximately $350 million.
Pluton's Managing Director, Tony Schoer commented 'we are delighted by the support from our existing institutional shareholder base and welcome a number of new institutional shareholders to the register'.
Details of the Placement
The placement has been made to institutional and sophisticated investors pursuant to Section 708 of the Corporations Act 2001 and Pluton's 15% capacity under ASX Listing Rule 7.1. Shares to be issued under the placement are expected to commence trading on 10 November 2010.
About Pluton Resources Limited:
Pluton Resources Limited (ASX:PLV) is a mineral exploration company focusing on iron ore in the Kimberley region of Western Australia, with additional copper, gold and silver projects located in North Western Tasmania. The company was listed in 2006 and is based in Melbourne, Australia. Pluton Resources has proven to innovate and develop new technologies that would otherwise restrict other companies.
Contact:
Mr. Tony Schoer
Managing Director
Mob: +61-411-232-711
Email: tschoer@plutonresources.com
www.plutonresources.com