| Doray Minerals has received commitment from investors for its placement of 13.85 million Shares to raise $18 million. |
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| Tuesday, 14 December 2010 09:30 |
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The placement, which was heavily oversubscribed, offers shares to be priced at $1.30 and will occur in two tranches. Tranche 1 is for about 8.3 million shares and Tranche 2 is for the remaining 5.5 million shares, which will be subject to shareholder approval at a general meeting to be held on January 20, 2011. ìThe overwhelming demand for this placement was particularly strong and we welcome the introduction of a number of institutional investors to our register. We see this as a great vote of confidence, not only in the company's results so far, but also in the prospects of the company going forward," he said. The funds will primarily be used for accelerated development of the Andy Well Gold Project 45km north of Meekatharra in Western Australia - of which Doray owns 80 per cent. Works will include the delineation of the Wilber Lode and other potential deposits, as well as the systematic exploration of a number of other projects in Doray's highly prospective Murchison portfolio, general corporate purposes and potential future acquisitions. Mr Kelly said: "This placement, and share purchase plan, gives us the working capital and shareholder backing to get on with the job of developing Doray into a significant West Australian gold explorer and producer by uncovering the potential of our current assets." Doray has also announced that it has adopted a share purchase plan and that an offer will be made under the plan to all of the companyís shareholders which were registered as of 5pm yesterday, witha registered address in Australia or New Zealand (eligible shareholders). Eligible shareholders will each be entitled to apply in parcels up to $15,000 of new fully paid ordinary shares in the company. The subscription price for each share will be $1.30 - the same price as the placement, which is about a 16 per cent discount to the volume-weighted average trading price of Dorayís shares on ASX during the five days immediately prior to the date of the announcement. The maximum amount to be raised under the share purchase plan will be capped at $3 million, bringing the total potential capital raising to about $21 million.
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