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CADOUX LIMITED — Capital/Financing Update 2010
Jan 19, 2010
64620_rns_2010-01-19_889468c0-1ff7-43e1-ab38-36f79f82c078.pdf
Capital/Financing Update
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19 January 2010
Dear Shareholder,
As previously announced, Empire Resources Limited agreed to sell its uranium prospect at Yarlarweelor in Western Australia and concentrate its exploration activities on advancing its copper and gold projects.
The sale of this uranium prospect to the pharmaceutical company Freedom Eye Limited was subject to due diligence by Freedom Eye Limited, shareholder approval to change Freedom Eye Limited’s company activities, a consolidation of capital, a change of company name to FYI Resources Limited and the appointment of two Empire representatives to the FYI Resources Limited’s board of directors. These requirements are now in the final stages of completion and the Company is currently undertaking a capital raising of up to a maximum of $2,500,000.
Once this capital raising is completed, FYI Resources Limited will emerge as a well funded, dedicated uranium exploration company with an exciting project containing several known occurrences of uranium mineralization. A summary of the Yarlarweelor uranium project together with details of the proposed exploration program is attached to this letter.
To facilitate the planned capital raising over the Christmas – New Year period, the closing date for this raising has been extended until the 29[th] January 2010.
For the proposed capital raising, the minimum investment in FYI Resources Limited is $2,000 and applications will be treated on a ‘first come first served basis’, subject to Director’s discretion.
As detailed in the prospectus, FYI Resources Limited intends to undertake a bonus option issue to registered shareholders within approximately six months of the closing date of the offer. The options are intended to be issued on the basis of one option for every two shares held. The options will be exercisable at 20 cents with an expiry date of 30 June 2012 and an application will be made for these options to be quoted on the Australian Stock Exchange.
The offers are made pursuant to the Prospectus and anyone wishing to acquire shares will need to complete the application form that accompanies the Prospectus and lodge it in accordance with the instructions in the Prospectus prior to the revised closing date of 29[th] January 2010. A copy of the FYI Resources Limited prospectus can be viewed online at www.freedomeye.com.au.
Suite 9, 8 Sarich Way Technology Park, Bentley Western Australia, 6102
I recommend that you read the Prospectus carefully, and if you have any queries, seek independent financial advice, before applying for shares in FYI Resources Limited. If you have any queries about the transaction or the Prospectus, please feel free to contact me on 08 9320 5138 or Mr Graeme Kirke of KSLCORP Pty Ltd, the lead manager for the capital raising, on 08 9320 5100.
Yours Sincerely
Russell Barnett Chairman
The information in this report that relates to Exploration Results has been compiled by Mr. David Ross B.Sc(Hons), M.Sc. who is an employee of Empire Resources Limited. He is a member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. He has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. David Ross consents to the inclusion in the public release of the matters based on his information in the form and context in which it appears.
YARLARWEELOR PROJECT
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Primary uranium mineralization has been previously recorded in drill holes from five locations within the Yarlarweelor project area.
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Grades of this mineralization are comparable with currently operating mines in Africa.
• A recent radiometric survey has identified numerous untested targets in a five kilometre band containing four of the previously recorded uranium occurrences. In addition two strongly anomalous radiometric bands extending for at least seven kilometres have been identified that have not been previously drill tested.
PROPOSED EXPLORATION PROGRAM
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Diamond drilling planned to commence at the end of March 2010 to confirm potentially economic uranium mineralization located in previously drilled percussion holes. Initial assays are expected at the end of April.
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New radiometric anomalies to be drill tested in the June quarter as well as a continuation of drill testing of known occurrences.
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Ongoing diamond drilling to define a mineral resource estimate that meets JORC requirements by the end of 2010.
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Yarlarweelor uranium project, Kangaroo Ridge prospect, section 13380N.