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MGX RESOURCES LIMITED Capital/Financing Update 2002
65331_rns_2002-11-28_3124b062-321d-4737-b51a-87d580d0237c.pdf
Capital/Financing Update
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Mount Gibson Iron Limited
ABN 87008670817
First Ploor, 7 Havelock Street West Perth 6005, Western Australia
PO Box 55, West Perth WA 6872
Telephone: 61-8-9485 2355 Facsimile: 61-8-9485 2305 E-mail: [email protected]
29 November 2002
VIA FACSIMILE: 1300 300 021
The Manager Company Announcements Australian Stock Exchange Limited Level 10, 20 Bond Street SYDNEY NSW 2000
PROPOSED SHARE PLACEMENT
Mr Brian Johnson, Managing Director of Mount Gibson Iron Limited, announced today that the Granier Family Trust and its Australian subsidiary had not met the extended deadline for subscription for 18.9m shares at 25 cents each (A\$4,725,000), although Mr Richard Granier and solicitors acting on behalf of the Trust continue to give assurances of the funds becoming available and being transmitted to the Company in the near future.
The Company will require additional working capital to complete the development of its Tallering Peak iron ore mine by mid 2002. The project economics supported by off-take agreements are such that it should generate pre-tax operating profits of approximately \$13.0 million per year. The Company's second mine at Mt Gibson is scheduled to come on stream one year later and should be able to be funded from cash flows and generate similar operating profits.
Contracts for all key aspects of the Tallering Peak project – mine development and infrastructure, contract mining, transport and shiploading - are in the final stages of negotiations and the Company expects to be able to advise Shareholders of these outcomes in the near future.
The Board of Mount Gibson Iron Limited has a strong desire to ensure that the Company has a sound balance sheet as it moves into the development phase of the Tallering Peak iron ore mine, while it continues pre-development work on the Mt Gibson project, and has appointed Perth Stockbroker Paterson Ord Minnett Ltd as Corporate Advisor in respect of the Company's financing requirements, in the event the Granier funds are not forthcoming..
Yours sincerely, MOUNT GIBSON IRON LIMITED
Angela Dent Company Secretary
Mr Brian Johnson, Managing Director Enquiries: 08-9485 2355 Telephone: E-mail: [email protected]
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