21st Jun 2006 11:42
Albidon Limited21 June 2006 Suite 1 Hillway HouseALBIDON LIMITED 141 Broadway Nedlands 6009 Western Australia ARBN 107 288 755 Tel:x+61x8x9389 6300 Fax:x +61x8x9389 6400 Email:[email protected] ASX Code: ALB AIM Code: ALD via electronic lodgement ALBIDON RAISES A$13M TO ACCELERATE ITS AFRICAN NICKEL PROJECTS Albidon Limited ("Albidon" or the "Company") has conditionally placed 14.1million new ordinary shares at a price of A$0.95 (£0.38) per share to raise upto A$13.4 million (£5.4 million) before expenses. The placing will be undertaken primarily to institutional investors located inthe United Kingdom and Australia. The purpose of the placing and proposed use of funds is as follows: 1. Commence pre-production activities at the Munali Nickel Project to accelerate the development of the project; 2. Continuation of step-out drilling aimed at expanding the Enterprise resource at Munali; 3. Follow-up drilling to delineate further nickel resources within the Munali Intrusion, to the north of the Enterprise deposit; 4. Drilling to test additional targets defined by geophysics and geology in the Munali district; and 5. General operating expenses. The Company will issue the shares utilising its 15% capacity under ASX ListingRule 7.1. The placing of shares in the UK will be undertaken by Numis Securities Limited("Numis") on behalf of the Company. Numis has agreed to use reasonableendeavours to place 5,400,000 shares. The placing of the shares by Numis hasbeen underwritten and is conditional on the placing agreement between theCompany and Numis becoming unconditional and not being terminated on or before26 June 2006 (or such later date as Numis and the Company may agree, being nolater than 3 July 2006). The remaining 8,700,000 shares will be directly placedby the Company in Australia, with the majority of these shares already subjectto firm subscription agreements. Albidon is pleased with the strong interest and support for its Munali NickelProject and related activities as represented by the participation in thiscapital raising. By order of the BoardAlbidon Limited If you have any queries please contact Nicholas Day on +61 8 9389 6300 or [email protected] Additional information may also be viewed on Albidon's website atwww.albidon.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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