FDL flinders diamonds limited

report here

  1. 1,532 Posts.
    issued through
    FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
    231 South Road, MILE END SA 5031
    Ph: 08 8234 9555 Fax: 08 8234 9566
    [email protected]
    N E W S
    • R E L E A S E •
    FOR IMMEDIATE RELEASE
    Monday 3 March 23008
    FLINDERS TO RAISE $14.6M FOR NEW WA IRON ORE
    AND SA DIAMOND EXPLORATION
    A $14.6 million capital raising has been announced by Flinders Diamonds Limited
    (ASX: "FDL") as part of a series of developments to better reflect the changing
    profile of the Company's Australian iron ore and diamond exploration portfolio.
    Funds raised will be used primarily to drive a maiden drilling program by mid year on
    the Company's Hamersley iron ore prospect located in the Pilbara Region of
    Western Australia.
    Under a series of initiatives, Flinders Diamonds today announced:
    • An A$11 million capital raising through a share placement
    • $3.6 million to be raised via a Share Purchase Plan (SPP) offer to existing
    shareholders
    • Name change to Flinders Mines Limited.
    The successful $11 million raising has been achieved through the placement to
    sophisticated and professional investors of 110 million ordinary shares in Flinders
    Diamonds at an issue price of A$0.10 per share.
    The Sydney Office of Bell Potter acted as Lead Manager to the issue.
    This takes the total number of ordinary shares on issue in Flinders Diamonds to
    1084 million.
    Flinders Diamonds has also announced plans to raise an additional $3.61 million
    through a Share Purchase Plan (SPP) – full details of which will be released shortly.
    The proposed SPP will allocate up to 20,000 additional new FDL shares available at
    10 cents per share to eligible shareholders.
    Funds for Hamersley iron ore project
    Flinders Diamonds’ Managing Director, Dr Kevin Wills, said the capital raising
    followed the recent emergence of the Company’s highly promising WA iron ore
    issued through
    FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
    231 South Road, MILE END SA 5031
    Ph: 08 8234 9555 Fax: 08 8234 9566
    [email protected]
    targets in its wholly owned E47/882 tenement in the Hamersley Ranges and the
    significance of these targets in relation to other industry projects in the area.
    Flinders’ Pilbara iron ore target is sandwiched between recent Rio Tinto and
    Fortescue Metals Group iron ore discoveries, with Flinders now planning a four to
    six month drilling campaign to assess the target.
    The Company made the decision to drill after new information that indicated the
    newly discovered Rio and FMG mineralisation continues into Flinders Diamonds’
    Hamersley project area.
    A recently-announced Rio discovery, Caliwingina North, is immediately to the north
    of Flinders’ Hamersley project while the FMG discoveries, Serenity and Solomon,
    abut and lie close to the southeast perimeter of E47/882.
    “The new discoveries are major Channel Iron Deposits (CID) and as we are located
    between them, they quite clearly enhance the prospectivity of our target,” Dr Wills
    said.
    “As iron ore prices have recently increased, today’s funding initiative is designed to
    focus urgent exploration activity on the Hamersley project which already is
    estimated to contain an iron ore target of between 325-390 million tonnes of iron
    ore.
    Ongoing diamond exploration
    Dr Wills said the recent emphasis by the market on the Company and its WA iron
    ore project should in no way be taken to diminish Flinders’ determination to discover
    a major new Australian diamond deposit.
    “In fact, we have just completed two major helimag surveys over some of our
    prospects in the mid north of South Australia and we are now working on analysis of
    this data,” Dr Wills said.
    “That survey is in addition to our recent expansion of other South Australian
    activities onto Flinders Island and the Gawler Craton,” he said.
    Name Change to Flinders Mines
    Shareholders will also be advised shortly of full details for a general meeting to be
    held in April to include as a key item, a proposed change of name for the Company
    from Flinders Diamonds to Flinders Mines – to better reflect its broadening scope of
    exploration commodities.
    MEDIA CONTACTS:
    Dr Kevin Wills Flinders Diamonds Limited 0419 850 997
    Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631
    Duncan Gordon Investor Relations (08) 8232 8800
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.