Citadel Resource Group Limited (ASX:CGG)
Melbourne, April 27, 2009 AEST (ABN Newswire) - Citadel Resource Group Limited (ASX:CGG) in late March was placed in a 48 hour trading halt to raise capital from Institutional Investors. The capital raising was successful. Shares totalling 213,456,000 were placed at 10.5 cents per share, raising a total amount of A$22,412,880 before costs.
The Company will hold an Extraordinary General Meeting on the 7th of May, 2009 to approve approximately 25% of the share placement, which is in excess of the 15% limit.
Cash at bank of A$26.1m at the end of the quarter. Expenditure during the quarter was A$9.5m which was substantially above the budget of A$4.9m. The reason for expenditure being above budget is the amount of work that was completed during the quarter with some of this work completed ahead of time. There was also a number of one off items that were incurred during the quarter. This included the one off cost to complete the refurbishment of the decline which was A$1.3m. This allowed the underground drilling to move ahead quickly with drilling and the associated testwork costing A$2.3m.
The completion of the Feasibility Study and launch into the Definitive Feasibility Study was also a major expenditure item during the quarter with engineering and the associated consulting work costing A$1.1m. Most of this work was scheduled across Q1 and Q2 of 2009. Independent consultants to verify the resource upgrade at Jabal Sayid and the associated mine design work was also completed with a cost of approximately A$500k.
Other items included some one off capital purchases associated with the decline refurbishment and ventilation systems and costs associated with closing the Perth and Sydney offices.
Budgeted expenditure for the next quarter is A$7.2m of which 50% will be engineering costs associated with detailed engineering for the Definitive Feasibility Study at Jabal Sayid and approximately 30% on drilling and assays. At Jabal Sayid the infill drilling program will be completed during the coming quarter as will the majority of the engineering work. The remaining expenditure will be on the gold program including ongoing metallurgy and drilling of the gold projects.
For the Full Citadel Resource Group's Quarterly Report, please see the link below;
http://www.abnnewswire.net/media/en/docs/60528-ASX-CGG-317065.pdf
Contact
Citadel Resource Group Limited
Ines Scotland (CEO)
Tel: +61-3-8680-4609
Email: ines.scotland@citadelrg.com.au
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