March 17 Quarterly Activities Report
Eyre Peninsula gold (100% interest)
- Mineral Resource estimates for the Baggy Green and nearby White Tank deposits were completed with the assistance of consultant Mining Plus Pty Ltd, and build on the maiden Barns Mineral Resource announced in July 2016.
- The total Wudinna Gold Camp Mineral Resource, including the Baggy Green, White Tank and Barns gold deposits totals 3.849 million tonnes at 1.62g/t gold for 200,300 ounces using a 0.5gt gold cut-off grade. The Resource is comprised of 0.38 million tonnes at 1.40g/t gold for 17,000 ounces of Indicated Resources and 3.469 million tonnes at 1.64g/t gold for 183,300 ounces of Inferred Resources.
- Metallurgical testing of supergene and primary mineralisation at Barns achieved gold recoveries of over 97% using a conventional gravity and cyanide leach flowsheet. The excellent results were achieved using modest reagent additions, presenting a viable option to treat all ore types.
- The Company's available cash position stood at $0.125 million at 31 March 2017.
- On 13 April, the Company announced a non-renounceable pro rata entitlement issue to Eligible Shareholders to raise approximately $1.623 million before costs. The funds raised are to be used to progress the Wudinna Gold Camp towards mine development, drill gold targets on the Drummond project, and meet ongoing working capital requirements.
- The Offer is at an issue price of $0.008 per share on the basis of 1 new Share for every 2 Shares held on 20 April, and 1 attaching Primary Option for every 2 New Shares subscribed. The Company will apply to the ASX for the Official Quotation of the Primary Options allowing them to be traded during their term.
- Each Primary Option has an exercise price of $0.012 and a term expiring 31 March 2018. If a Primary Option is exercised, the Option Holder will receive a Secondary Option which has an exercise price of $0.015 and an expiry date of 31 March 2019.
- The Offer price of $0.008 represents a 20% discount to the Company's closing price on 10 April 2017 and a 28% discount to the volume weighted average price of the Company's shares over the 30 days leading up to the Offer announcement.
If the valuation of the attaching Primary Option is also taken into account, these increase to indicative discounts of 40% and 45% respectively.
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About Andromeda Metals Ltd
Andromeda Metals Ltd (ASX:ADN) is an Australian Securities Exchange listed company focusing on mineral exploration for gold, copper and lithium deposits. The company has built a highly prospective exploration portfolio of projects covering 7,969 sq kms within 21 exploration licences located in South Australia, Queensland, Western Australia and the Northern Territory. Andromeda Metals was incorporated on 23 December 1993 and subsequently listed on the ASX on 11 September 1996. The company's head office is in Adelaide, South Australia.
Andromeda Metals' vision is to be a sustainable minerals exploration company providing shareholders with risk managed discovery, development and mining opportunities.
Andromeda Metals Ltd