Westgold Resources Limited (ASX: WGR)
ASX RELEASE 26 February 2009
Metals X underwrites $5.6M rights issue to kickstart additional drilling at exciting high grade Rover Project.
Westgold advises that it intends to complete a 1 for 5 non-renounceable rights issue at $0.20 per share to fund additional exploration efforts at its exciting Rover Project near Tennant Creek in the Northern Territory.
Westgold?s major shareholder, Metals X has agreed to fully underwrite the issue. Whilst Metals X will not itself charge a fee for this under-writing, Westgold has agreed to a 3% fee to any sub-underwriters of Metals X.
The 2008 year was one of significant success for Westgold at the Rover 1 prospect where drilling returned a number of bonanza gold intercepts from a polymetallic IOCG (iron-oxide copper-gold) ore system. The ore system remains open in all directions.
Westgold has a major landholding covering the Rover Field. In addition to Rover 1, Westgold has returned a significant lead-zinc discovery from its Explorer 108 prospect and believes its Explorer 142 prospect has the makings of another significant IOCG deposit.
Westgold has completed detailed magnetic and gravity surveys over a large part of its exploration tenure in the region and also intends to drill newly defined targets with both the knowledge of its existing discoveries, the history of historic Tennant Creek style mines and the expectation that more bonanza discoveries like Rover 1 will be made.
Metals X Managing Director, Peter Cook said ?We believe that Rover 1 is one of the more outstanding gold discoveries made in Australia in recent times. It is exceptionally high grade and we don?t believe it will exist in isolation.?
Westgold intends to apply the funds to immediately kick-start additionally drilling at Rover 1 and assess the look-alike key targets in near proximity.
Westgold Managing Director, Andrew Beckwith said ?We are delighted that Metals X has again endorsed the Company and its prospects. The Metals X team are miners with significant experience and a track record in operating and developing mines. We are very confident that many of our prospects have the capability to evolve into mines?.
The Company will shortly provide details of the Rights Issue timetable, including details of the Record Date and the date of dispatch of the Offer Document.
For further information contact:
Andrew Beckwith Nicholas Read
Managing Director Read Corporate
Westgold Resources Limited (08) 9388-1474
Tel (08) 9326 5700
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