The Directors of Giants Reef Mining Limited are pleased to announce that it has lodged a Prospectus with the ASIC today for the offer of up to 140,452,320 Shares at an issue price of $0.036 each, together with 140,452,320 free attaching Options to raise up to $5,056,284 if fully subscribed.
The offer is a Pro-rata Non-renounceable Entitlements Issue made to existing Shareholders of Giants Reef Mining Limited on the basis of one new Share (and one free attaching 30 June 2004 Option) offered for every three shares held at the Record Date. The Record Date has been set at close of business 16 July 2002. Shareholders may apply for additional Shares beyond their 1:3 entitlement, subject to availability and the discretion of Directors.
The Shares will rank pari passu with the existing shares. Each Option is exercisable into a Share by the payment of $0.10 per Option at any time prior to 5:00PM Western Standard Time on the 30 June 2004.
The Company is currently completing a feasibility study, with its joint venture partners, of the high grade Chariot Gold Deposit in Tennant Creek NT with development planned to commence in the October to December quarter of 2002. Funds raised from the Entitlements issue, if fully subscribed, will be directed towards:
- Mine construction work at Chariot; - Refurbishing the 100% owned Warrego Ore Treatment Plant; - Maintaining exploration covenants; - Providing additional working capital.
Of strategic importance to the Company is retaining 100% ownership in the Warrego Ore Treatment Plant, which when operational will be the only treatment facility on the entire Tennant Creek Mineral Field. This together with Giants Reef's extensive tenement holdings in the field positions the Company well for long term growth.
Full details of the Offer are included in the Prospectus. Shareholders and investors are urged to read the Prospectus in full.
Appendix 3B is attached as an annexure to this announcement.
C W Duchatel CHAIRMAN
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