+++++++++++++++++++++++++ Diversified gold and base metals group Pilbara Mines Limited (ASX: PIL) has boosted its cash reserves to the tune of $7.3 million to underpin an expanded 2002 exploration push after completing a rights issue to shareholders and December 2000 optionholders.
The Perth-based Company said today it had received total funds of $7.3 million from the issue, including the take-up of part of the shortfall to the issue at 20 cents per share by Directors.
The issue, which was first announced in March, was for the issue of up to 45,704,905 shares to all shareholders on a one-for-one basis, including a free option and the placement of 2,399,982 shares on the same terms and including a free option to December 2000 optionholders.
Pilbaras Managing Director, Mr John Davis, said the Board had decided to limit the issue of the shortfall due to the Companys strong cash position and the Directors desire to restrict dilution as far as possible.
Pilbara is in a very strong position at a time of great opportunity in the resource sector, and we wanted to maximise our shareholders exposure to future growth by limiting the number of new shares being issued, Mr Davis said.
Following completion of the issue, Pilbara has 82,268,928 shares on issue, capitalising it around $16 million at a share price of 20 cents.
Pilbara is well placed for growth, with exposure to a quality base metals project at Teutonic Bore following the recent high-grade Jaguar discovery and an expanded exploration focus both at Teutonic Bore and at the Lennons Find base metals project in the Pilbara, Mr Davis said.
The Jaguar discovery, located near the old Teutonic Bore mine some 250 kilometres north of Kalgoorlie, has emerged as a promising copper-zinc-silver deposit and is currently subject to a major drilling program being carried out by project manager Inmet Mining Corporation.
Inmet, a Canadian-based base metals producer, is earning a 70% interest in the Teutonic Bore ground by spending $3.5 million up to November 2004, and is currently focusing its efforts on Jaguar.
Pilbara retains the rights to all surface resources at Teutonic Bore as well as gold resources in the area, and recently kicked off 17,000-metre drilling program on the property targeting identified gold anomalies, prospects and areas of interpreted gold potential.
Pilbara has budgeted $1 million for this gold exploration program during 2002, with additional funding allocated to regional exploration at the Lennons Find base metals project near Marble Bar.
Our gold exploration campaign at Teutonic Bore is particularly exciting, as there has been limited previous exploration for gold on the property, Mr Davis said.
However, the area has proven gold potential, being located just 20 kilometres from the multi-million ounce Thunderbox Project currently under development.
The Teutonic Bore Project is located 260 kilometres north of Kalgoorlie and 60 kilometres north of the regional mining centre of Leonora in Western Australias Eastern Goldfields. It was operated as an open cut and underground mine by BP Minerals Australia Pty Limited between 1980 and 1985.
ASX Code: PIL Options Code: PILO
Released by: On behalf of: Jan Hope / Nicholas Read Mr John Davis Jan Hope & Partners Managing Director Telephone: (08) 9388-1474 Pilbara Mines NL Telephone: (08) 9322-9999 Mobile: (0417) 916-849