26
June 2009
ASX
/ Media Announcement
FOX
OPENS SHARE ENTITLEMENT OFFER
Highlights:
?
Entitlement
offer to shareholders to raise up to $13.1 million.
?
Strong progress at Fox?s base
metals and iron ore projects continues.
Pilbara-based
minerals developer Fox Resources (ASX: FXR) has opened its shareholder entitlement
offer to raise up to approximately $13.1 million from the issue of up to
approximately 101 million shares at 13 cents per share.
Shareholders are being offered one share plus one free
attaching option for every two shares they hold in Fox. The options are
exercisable at 30 cents each and expire on 30 November 2010.
Fox Resources Executive Chairman, Terry Streeter, said
the Fox Board has a long term positive outlook for steel feed minerals for
which Fox Resources is well positioned.
?Fox is particularly well positioned to capitalise on
long term commodity demand and the wave of strategic acquisitions and
consolidation taking place among the Pilbara miners and explorers.?
?As a major shareholder in Fox, I intend to
participate in the offer and I anticipate that Fox?s other major shareholders
will also participate,? said Mr Streeter.
Funds will be used to drive ongoing exploration
programs at Fox?s base metal and iron ore projects in the Pilbara with the
intention of increasing Fox?s current resource base, as well as to continue
promising heap leaching testwork at the Radio Hill nickel and copper mine. The
funds will also be used for repayment of creditors and general working capital.
The offer, if fully subscribed, will conclude a $16.5
million capital raising program which commenced in April this year with a $3.4
million share placement. This is expected to significantly strengthen the
company?s balance sheet and allow it to maintain the momentum of its aggressive
exploration and development strategy, which promises to deliver value for
shareholders.
Recently commissioned metallurgical test-work has
confirmed the potential for a successful heap leaching operation using existing
stockpiles and oxide resources from Fox?s Whundo and Radio Hill mines.
Fox Resources Managing Director, Bruno Seneque said
the potential heap leaching operation represents a low cost opportunity for Fox
to produce high value end products.
?If successful, this could provide the basis for a
highly profitable five year operation.?
?We believe there is also potential to use heap leach
infrastructure to treat known sulphide resources at the Radio Hill and Whundo
projects in the future,? said Mr Seneque.
Fox also continues to progress its Mt Oscar iron ore
project. The Company announced an initial inferred magnetite iron ore resource
of 72.4 million tonnes @ 34% Fe in March this year, less than a year after the
tenements were granted. Fox has an exploration target of between 800 million
tonnes and 1.2 billion tonnes[2] based on the 8km of
strike length yet to be drilled along with geophysics, field mapping and
reconnaissance by Fox staff.
A scoping study on the Mt Oscar project has been
recently completed, with the independent consultants, Mineral Engineering
Technical Services Pty Ltd, who completed the report, declaring that the
project has a great potential to be a successful project.
The entitlements offer is currently scheduled to close
on 14 July 2009.
About Fox
Resources
Fox Resources is a
nickel focused metals developer, with a substantial resource footprint in the
world-renowned Pilbara region. Fox?s Radio Hill project has been producing and
shipping nickel and copper concentrate for more than four years. It was placed
on care and maintenance during 2008 following adverse movements in nickel
prices.
The project offers
the advantages of established infrastructure, including a new 84 man village, a
425,000 tonne per annum nickel processing plant, a fully developed underground
mine at Radio Hill and concentrate storage facilities at the Port of Dampier,
40km from the Radio Hill Mine. The concentrates produced at Radio Hill are also
high value due to their low levels of magnesium oxide and arsenic.
Fox Resources has
an off-take arrangement in place with marketing partner Jinchuan Group Limited
- China's
largest producer of nickel, and a major Fox Resources shareholder. The Company
has also the benefit of a highly experienced Board and management team, with
particular expertise in the development of major nickel projects.
The Company is
also advancing its substantial Mount
Oscar magnetite project in
the Pilbara, where it has previously announced an initial inferred JORC
resource estimate of 72 million tonnes grading 34% Fe (ASX announcement dated
18th March 2009). A recently completed Scoping Study has described the project
as positive with great potential for success and has recommended proceeding
with Pre-Feasibility studies.
- ENDS -
For further details please contact:
Bruno Seneque, Managing Director +61 8 9318 5600
Ryan McKinlay / Warrick Hazeldine ? Purple Communications +61 8 6314 6300
IMPORTANT NOTICE
This letter
contains forward-looking statements that, despite being based on Fox's current
expectations about future events, are subject to known and unknown risks,
uncertainties and assumptions, many of which are outside the control of Fox and
its Directors. These known and unknown risks, uncertainties and assumptions,
could cause actual results, performance or achievements to differ materially
from future results, performance or achievements expressed or implied by
forward-looking statements. These risks, uncertainties and assumptions include
but are not limited to the risks outlined in section 6 of the enclosed
prospectus. Forward-looking statements include those containing such words as
"anticipate", "estimate", "opportunity",
"plan", "intend", "aim", "seek",
"believe", "should", "will", "may" or
similar expressions.
The following
statement is included for the purposes of section 734(6) of the Corporations
Act:
?
Fox is the issuer of
the securities mentioned in this letter;
?
a prospectus for the
offer is available and is enclosed with this letter;
?
the offer of the
securities mentioned in this letter is made in the prospectus and the
entitlement and acceptance form accompanying the prospectus;
?
you should consider
the prospectus in deciding whether to acquire the securities and in particular,
you should carefully read section 6 of the prospectus that identifies some key
risks of investing in securities in Fox; and
?
any person that wants
to acquire the securities will need to complete the entitlement and acceptance
form accompanying the prospectus.
DISCLAIMER
The Information in
this report that relates to Mineral Resources is based on previous
announcements made by Fox Resources to the ASX. A full resource statement for
the Mount Oscar
project is contained in ASX release by Fox dated 18th March 2009.
COMPETENT PERSONS STATEMENT
The Exploration
information in this report is based on information compiled by Mr Neil Winfield
who is an employee of the company and is a member of the Australasian Institute
of Mining and Metallurgy. Mr Winfield has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration
and to the activity 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?. Mr Winfield
consents to the
inclusion in the report of the matters based on his information in the form and
context in which it appears
The potential
quantity and grade of the untested areas of the Mount
Oscar project is conceptual
in nature and there has been insufficient exploration to define a Mineral Resource
and it is uncertain if further exploration will result in the determination of
a Mineral Resource.
***
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