This just out.....Too good to be true but it is....
RED BACK MINING NL 2002-05-29 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ On 16 April 2002, Red Back Mining NL ("Red Back") announced a non-renounceable 2 for 9 entitlements issue at 20 cents per Share ("the Issue"). The Issue is jointly, fully and unconditionally underwritten by major shareholders African Lion Limited, Macquarie Bank Limited and Resolute Mining Limited ("Resolute") for no fee.
The Prospectus for the issue was lodged at the Australian Securities and Investments Commission on 29 May 2002. The timetable for the issue is as follows:
Announcement of Entitlements Issue 16 April 2002 Application to ASX for official quotation of Shares 16 April 2002 Prospectus Lodged with ASIC and ASX 29 May 2002 Notice to Option Holders sent 29 May 2002 Record Date to determine entitlements to Shares 13 June 2002 Prospectus and Entitlement and Acceptance Form despatched 17 June 2002 Closing daft for acceptance and payment of 20 cents per Share 4 July 2002 Shares quoted deferred settlement 5 July 2002 ASX Notified of under subscriptions 9 July 2002 Despatch Date 12 July 2002
The Issue is to fund the Bankable Feasibility Study ("BFS") at Red Back's Chirano Gold Project in Ghana. The BFS which is budgeted to cost $3.6 million is scheduled to be completed in October 2002.
The Directors of Red Back are pleased to be able to offer Red Back shareholders registered at the Record Date of 13 June 2002 the opportunity of purchasing additional shares at a 42% discount to the current share price.
Details of the current resource inventory at the Chirano project were released on 1 May 2002 and updates to pro-feasibility economics and the award of the BFS contract to Lycopodium Pty Ltd were announced on 16 May 2002.
In summary, Indicated and Inferred Resources at Chirano total 26.77 million tonnes grading 2.2g/t for 1.87 million ounces. Of these resources, 15.76 million tonnes grading 2.3g/t for 1.19 million contained ounces have been optimised into open pits. Approximately 77% of these pit optimised ounces are contained within a 3km long central pit complex. Annual production over a 7.5 year mine life is estimated at 140,000 ounces per annum from a 2.0 million tonne per annum treatment plant with estimated cash costs of approximately US$200 per ounce. At a gold price of US$300 per ounce pre-capital undiscounted cash flow is estimated at US$97.6 million.
As announced on 16 April 2002, Red Back has entered into a strategic relationship with Resolute which includes a first right of refusal over Resolute's Obotan treatment plant. The BFS will examine the suitability of relocating the Obotan plant and adapting plant design to Chirano ore.