Australian Bauxite Limited (ASX:ABZ) Completes A$6 Million Placement To Fund Its Current Exploration and Development Programs
Sydney, Aug 23, 2010 AEST (ABN Newswire) - Australian Bauxite Limited (
ASX:ABZ) advises that is has completed a placement of 13.50 million fully paid ordinary shares (15.77% of its issued capital) at 45 cents per share to sophisticated, eligible and/or professional investors, as defined under Section 708 of the Corporations Act, raising A$6,075,000 before costs.
Following settlement on or before 27 August, ABx will have cash reserves in excess of A$10 million to fund its current exploration and development programs.
The shares are to be issued in accordance with a resolution passed by shareholders at the Company's Annual General Meeting on 28 May 2010.
State One Stock Broking Limited facilitated the placement with strong participation by institutional funds. ABx will release an updated top twenty shareholders as soon as practicable.
ABx will continue its high rate of exploration activity for the remainder of 2010, including the completion of 1,000 holes, and, as a result of this capital raising, increasing the exploration rate to 1,400 holes in 2011. By the end of 2010, ABx expects to complete first pass drilling on all of its granted tenements in Queensland, NSW & Tasmania, and complete prioritisation of its projects.
Initial Commercial Presentations
ABx plans to present initial results from several bauxite projects to potential customers and/or partners, commencing in September. Opportunities for project advancements may arise from these initial presentations but the detailed review of several projects will also help ABx to identify its projects with the highest potential for early development and production.
About ABx Group Limited
ABx Group Limited (ABx) (ASX:ABX) started as a bauxite miner in Tasmania in 2014 & controls the Eastern Australian Bauxite Province. In 2020 to 2023, ABx also discovered Australia’s only true ionic adsorption clay Rare Earth Elements resource at Deep Leads in pine plantations 40km west of Launceston with a JORC-compliant resource of 89 million tonnes from only 29% of the mineralised outline, averaging 844 ppm total rare earth oxides that is the most enriched in the critically important rare earths, Dy and Tb, of any Australian REE deposit.
ABx has also developed a proprietary technology to produce fluorine chemicals from an aluminium smelter waste product and return the fluorine back into the smelters, thus reducing reliance on imported aluminium fluoride.
ABx has committed a large proportion of its expenditure into Research and Development and has found ways to capitalise on the main strengths of its bauxite type which is very clean, free of all deleterious elements and can be separated into different product streams using physical, chemical and geophysical methods. It has produced and marketed specialist bauxite products for the manufacturers of fertiliser, cement with high late strength for major infrastructure such as bridges and is in the advanced stages of approvals for production of metallurgical bauxite from its Binjour Bauxite deposit with JORC-compliant resources of 37 million tonnes of bauxite, in a joint development with a Chinese-focussed Australian trading company Good Importing International.
ABx is also preparing to produce fertiliser grade and cement grade bauxite from its DL130 bauxite quarry in northern Tasmania, 40km west of Launceston. This quarry is sited in the middle of the large Deep Leads REE deposit and may one day be a site for heap leaching of the REE using a low-cost, benign leachate with the same acidity as apple juice or tea.
ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.
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