MEDIA RELEASE
6 February 2008
Matilda to
raise $6.7m for Tiwi expansion and Qld exploration
Matilda Minerals Limited (ASX: MAL) (Matilda or the
Company), Australia’s only mid-tier mineral sands producer, is aiming to
raise approximately $6.7 million through a renounceable rights issue at a price
of 40 cents per share (Right Issue), which is a 7.5% discount to the closing
price on 5 February 2008 and a 12.1% discount to the 14 day volume weighted
average price. The funds will drive the next phase of development for
Matilda, which will be to expand the Tiwi
Islands project and to accelerate the
exploration program on its promising Cape York
tenements.
An Offer Document relating to the Rights Issue is
expected to be dispatched on 25 February 2008. Each shareholder eligible to
participate will be entitled to subscribe for one new ordinary share in Matilda
for each four existing ordinary shares registered in their name at 5.00pm
(AWDST) on 20 February 2008 (Record Date).
The Company has its flagship mine in full production
on the Tiwi Island,
and has recently expanded its tenement presence and exploration activity in North Queensland.
Matilda’s Chairman Barry Bolitho said that
shareholders would be offered an opportunity to further participate in the
growth of the Company through the Rights Issue.
“We are now in full production on the Tiwi Islands,
and have been shipping concentrate to China where demand for our high
quality zircon and rutile product is strong,” he said.
“We have a large, strategic landholding on Cape York that is showing great promise and thus far has
only been lightly explored. The funds from the Rights Issue will enable
us to accelerate an exploration program across these tenements and help drive
long term value for our shareholders,” 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 an impressive heavy mineral suite. We have 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 said.
The Rights Issue will be fully underwritten by Euroz
Securities Limited. The Rights Issue will be open from 25 February 2008 through
to 12 March 2008.
For further information contact:
Bruce Maluish – Managing Director
Warrick Hazeldine
Matilda Minerals Limited
Investor Relations
Tel: (08) 9481 1444 or 0418 940 417
Tel: (08) 9485 1254 or 0417 944 616
Background
Matilda Minerals Limited (ASX: MAL) is focused on
developing high-value zircon and rutile-rich mineral sands deposits on its
flagship Tiwi Islands project. Matilda distinguishes
itself from traditional mineral sands companies whose primary product is
lower-priced ilmenite.
Its Tiwi Islands mineral sands project is situated on Bathurst and Melville (Tiwi) Islands north of Darwin, Northern Territory,
and expects to be in full production for the next four years on Melville Island. Increased worldwide demand for zircon
has led to the price exceeding US$800 per tonne.
Matilda has compiled an impressive portfolio of
exploration tenements which covers the highly prospective far north Queensland region on the west of Cape
York including Urquhart Point and more recently, Mapoon.
Matilda also has other projects in Western
Australia at Pender Bay (north of Broome), Anson Bay
(north Western
Australia) and Carnarvon.
For more information visit: www.matildaminerals.com
Issued by
Purple Communications
Level 3, 28 Kings Park Road, WEST
PERTH WA 6005
Ph: 08 9485
1254 Fax: 08 6263 0455
purple@purplecom.com.au
