OXR oxiana limited

a mention in sydney morning herald

  1. 679 Posts.

    A mine of resources

    Oxiana Resources proved its talents are not confined to digging up gold when it announced a $60 million placement last night. Marketing also appears to be one of the Melbourne miner's strong suits.

    Underwritten at 52c, the placement was superbly timed to take advantage of the recent surge in Oxiana's share price. Worth 48c in the middle of April, the shares closed at 60c yesterday.

    While nobody's doubting the potential of Oxiana's Sepon project in Laos, or the benefits of a strong gold price, an "exceptional gold result" and a bullish broker report never hurts when it comes to getting the punters interested.

    Oxiana made its "exceptional" announcement last week, but did not change its resource/reserve estimates for Sepon. However, JB Were was excited, declaring exploration results "excellent" and raising the possibility of a valuation upgrade.

    Speaking of the House of Were, it got the job to sell the 115 million shares to institutions. The placement is about as much new capital as Oxiana can raise without shareholder approval, and couldn't have been underwritten at 52c if it weren't for the recent gains.

    The new funds will be used for exploration. Some will even be "applied to Sepon Copper as necessary to maintain development momentum ahead of debt drawdown".

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