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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (66639)	8/31/2010 9:38:22 AM
From: LoneClone	Read Replies (1) \| Respond to of 194794

Finders Resources raises A$20.95m for Wetar Copper project development by Jeff Coote proactiveinvestors.com.au Finders Resources (ASX: FND) has received firm commitments from investors for a placement of 75 million new ordinary shares issued at A$0.28 per share to raise gross proceeds of AUD$20.95 million. Funds raised will be applied to the near term development of the Wetar Copper project in Indonesia, capital equipment purchases, payment of environmental bonds, relocating the Whim Creek plant from Australia and completion of a revised capital estimate for the planned expansion to 23,000 tpa copper cathode. Finders is no longer in a trading halt on the release of today's announcement. The placement will be made in two tranches: - Tranche 1 comprising the placement of 28.07 million shares to raise $7.86 million, to be issued immediately under the Company’s available 15% capacity under Australian Securities Exchange Limited (ASX) Listing Rule 7.1, and; - Tranche 2 comprising the placement of 46.75 million shares to raise $13.09 million, subject to shareholder approval at a general meeting to be held on or around Thursday, 30 September 2010. The placement was managed by Western Australian based stockbroker Blackswan Equities Limited. Russell Fountain, chairman, said “I welcome the strong support investors have shown Finders through this placement. There was strong demand overall. We are very pleased with the support we received from our existing cornerstone shareholders, Resource Capital Funds, Taurus Funds Management, Acorn Capital and Straits Resources." "Also pleasing is the fact that through Blackswan we have been joined by several new institutional investors and a strong spread of sophisticated investors." “Finders is now ready to make the crucial step into production following years of study, implementation and planning. We have proven and de-risked the Wetar operation with our successful demonstration plant which has been operating for more than a year," Fountain added. In its quarterly operations report, Finders noted a solid performance as it moves the Wetar copper project towards commercial production. During the second quarter to end-June 2010, the company completed upgrades to Wetar’s demonstration plant ahead of schedule. Finders said that the demonstration plant’s current performance has been steady, with 416 tonnes of ‘Grade A’ cathode being produced in the quarter, equating to 4.6 tonnes of copper per day. The company sold 439 tonnes during the period with an average price of US$7,100 per tonne. “On completion of the placement we will focus on expanding the demonstration plant to 7ktpa capacity of copper cathode once permitting is finalised." Finders is one of very few emerging copper players with real potential to become producers for Australian investors. "The robust economics underpinning our Wetar project, combined with the experience of our management and the support of the local Indonesian community auger well for a healthy and profitable future for the company,” Fountain said. The company is also targeting completion of a scoping study for the gold and silver deposits at its Ojolali gold-silver project in Sumatra.