Mid-tier mineral sands producer, Matilda Minerals Ltd, is aiming to raise about $6.7 million through a renounceable rights issue, to fund the expansion of its Tiwi Islands project and to accelerate the exploration program on its Cape York tenements.
Eligible shareholders will be entitled to subscribe for one new ordinary share in Matilda for four existing ordinary shares, at a price of 40 cents each- which is a 7.5 per cent discount to the closing price on February 5, and a 12.1 per cent discount to the 14 day volume weighted average price.
An offer document relating to the rights issue is expected to be dispatched on February 25, 2008.
Matilda said its flagship mine was in full production on the Tiwi Island, and it has recently expanded its tenement presence and exploration activity in North Queensland.
Matilda chairman Barry Bolitho said it had been shipping concentrate from Tiwi to China, where demand for its high quality zircon and rutile product was strong.
"We have a large, strategic landholding on Cape York that is showing great promise and thus far has only been lightly explored," Mr Bolitho said.
In November 2007, Matilda was granted permits for mineral sands deposits for the high potential Mapoon area near Weipa, where sampling has indicated a significant heavy mineral suite.
It has also been granted exploration permits for the Urquhart Point region south of Weipa in this same geographical area of interest in North Queensland.
"As recently announced, our first pass exploration program suggests this region has the potential to host deposits considerably larger than those at our Tiwi Island project, and this remains a key target for our exploration efforts," Mr Bolitho concluded.
The rights Issue will be fully underwritten by Euroz Securities Limited and will close on March 12, 2008.
