ShawRiver to raise $25m to progress development of manganese assets in Namibia, Pilbara and Ghana
Key Points
- Proceeds to fund infill drilling and Feasibility Study on the Otjozondu manganese project in Namibiain preparation for production start up in 2012
- Funds to be applied to aggressively progress drilling programs on the Baramine manganese project in the Pilbara commencing April 2011
- Funding to support drilling and bulk sampling at Butre manganese project in Ghana.
Shaw River Resources Limited (ASX:SRR) is pleased to advise that it has resolved to raise up to $25 million through a placement of 125 million shares at an issue price of 20 cents per share to sophisticated and professional investor clients of Hartleys Limited and its major shareholder, Atlas Iron Limited (Atlas).
The funds raised pursuant to the capital raising will be used to fund development of Shaw River’s manganese assets in Namibia, Australia and Ghana. This will include the commencement in May 2011 of an extensive infill drilling program and a feasibility study on Shaw River’s Otjozondu manganese project in Namibia with a view to bringing Otjozondu into manganese production in 2012. Funds will also be directed at additional drilling and scoping studies for on Shaw River’s Baramine and Ghana manganese projects.
Shaw River Managing Director Vincent Algar said the proceeds would enable the Company to accelerate the development of the Otjozondu manganese project in Namibia, enabling Shaw River to commence the generation of strong cashflow from mid-2012 onwards.
“We are delighted by the strong international support received for the Placement which will see the introduction of a number of the world’s largest and most well respected institutional investors onto the Shaw River register, and by the confidence demonstrated by our current shareholders,” Mr. Algar said. ”The strength of interest in the Placement ensures Shaw River remains a well funded manganese development company that continues to execute its strategy of building a global manganese business.”
“Feasibility studies are underway at the Otjo Project Namibia and drilling will commence in early May 2011. In Australia drilling will commence at Baramine manganese project in late April 2011.”
Shaw River’s largest shareholder, Atlas Iron Limited, is participating in the Placement. Hartleys Limited is Broker to the Offer.
The Placement will be completed in two tranches with the first tranche of up to 48.7 million shares to be issued pursuant to the Company’s 15% capacity under ASX Listing Rule 7.1, and the second tranche of up to 76.3 million shares to be issued subject to shareholder approval at the Company’s General Meeting currently scheduled for Tuesday 17 May 2011.
Strategy for the Otjozondu Project in Namibia
Shaw River is seeking to develop its large-scale manganese project in Namibian. Activity over the coming months will focus on delivering this outcome including:
- Infill drilling results in July 2011;
- Beneficiation test results in August 2011;
- Resource upgrade August/September 2011; and
- Feasibility Study results in 4th Quarter 2011.
Shaw River is targeting to commence production at its Otjozondu manganese project in Namibia in mid-2012.
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