D'Aguilar Gold Limited (ASX:DGR) Updates On The AusNico IPO
Brisbane, April 30, 2010 AEST (ABN Newswire) - D'Aguilar Gold Limited (ASX:DGR) announce further to the previous announcement of 23 April 2010, the Directors are pleased to provide a further update regarding the upcoming IPO of its 79% subsidiary AusNiCo Limited.
Following the IPO raising of A$4 million at 20 cents per share, AusNiCo will have approximately 110 million shares on issue, with D'Aguilar retaining 72 million shares (approximately 65%). This structure will provide D'Aguilar with a significantly higher holding value for AusNiCo than was the case with the proposed merger of AusNiCo with Lions Gate Metals Inc (CVE:LGM).
Given the strong resurgence in the underlying Nickel price over the past six months, early subscription interest received by the Board and Management indicates that the entire A$4 million will be successfully raised under the IPO. The raising is expected to provide for:
Partial reimbursement of costs to D'Aguilar A$550,000Costs of the IPO and Fundraising A$400,000AusNiCo Administration A$800,000AusNiCo Exploration and Development A$2,000,000Working Capital A$250,000
The Board is aiming to achieve the IPO as soon as practicable, by making use of existing independent reports and the advanced status of documentation associated with the proposed transaction with LGM. Independent management is in the process of being installed, with AusNiCo having already appointed a full-time Exploration Manager, who is continuing the exploration work on the AusNiCo tenements funded by D'Aguilar.
Following the IPO, the exploration and development focus of Ausnico will continue to be on sulphide discovery at Pembroke and Mt Cobalt, which has already returned an exploration drilling result of 50m @ 0.34% Nickel, including 4m @ 1.1% Nickel. The style of mineralisation is based on the Avebury deposit in Tasmania, owned by Allegiance Mining prior to its A$840m take-over by Zinifex in 2008. At Avebury 172,000 tonnes of contained nickel was defined (refer footnote) and later developed at grades of approximately 1% nickel, and concentrates containing more than 20% nickel were produced.
Footnote: Reference 22 October 2008, Oz Minerals Ltd. Presentation to the Australian Nickel Conference. Resources for the Avebury project were stated at Inferred Resources 9.6mt @ 0.88% Ni, Indicated Resource 6.05mt @ 1.01% Ni and measured Resource 2.37mt @ 1.03% Ni, giving a combined total of 18.18mt @ 0.95% Ni.