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ENVIROGOLD LIMITED: MEDIA
RELEASE
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MEDIA RELEASE
31 October 2007
ENVIROGOLD CLOSES A$16m SHARE PLACEMENT FOR
DOMINICAN REPUBLIC GOLD PROJECT
Closes more than two weeks early and
two-and-a-half-times oversubscribed
Emerging Australian resources development company EnviroGold Limited (ASX: EVG) (“the
Company”, “EnviroGold”) advises
that its A$16 million share offer to fund the development of the
Company’s Las Lagunas Gold Tailings Project
in the Dominican Republic has closed today, more than two weeks early and
heavily oversubscribed.
The offer was scheduled to close on November 16, but due to the
overwhelming demand from institutional investors and sophistication investors
from Australia and overseas, closed today two-and-half-times oversubscribed.
Leading London-based fund manager RAB Capital has taken a position in
the placement, as has Credit Suisse.
The offer was for 100 million shares at 16 cents each. The shares also
have one free attaching option for every two shares issued. The options will
be listed and are exercisable at 25 cents each on or before 31 December 2009.
Perth-based broking house Indian Ocean Capital was lead manager to the
highly successful offer.
EnviroGold executive
chairman Mr Brian Johnson said he was delighted at the strong response to the
offer and also the market’s support of EnviroGold’s
current projects and growth strategy.
“Completing the capital raising in such a short timeframe with
such strong backing from the market is a sign of the confidence the market
has in our business model to reprocess refractory ores and tailings, and our
growth strategy to increase our resource base in Latin America and
China,” Mr Johnson said.
“We can now move ahead with the development timeline for the Las
Lagunas project, and are on schedule to begin
construction in the fourth quarter this year and commission the project
before the end of 2008.”
A bankable feasibility study for the project has been completed and EnviroGold has received environmental and construction
permits necessary to commence development.
The Company is currently also engaged in predevelopment work for its
Trujillo Gold Project in Peru (50% joint venture with Peruvian gold mining
company Manuel San Minera). It plans to commission
Trujillo by the end of 2009, and believes the project has the capacity to
double annual profit to around $20 million per year in 2010. EnviroGold’s third current project, the Shandong
Gold Project in China is due to be commissioned by mid 2010.
Website: www.envirogold.com
ENDS
For further information please contact:
Mr Brian
Johnson
Mr James Tyers
Executive Chairman
Executive Director
EnviroGold
EnviroGold
Email: brianjohnson@envirogold.com
Email: jamestyers@envirogold.com
Ph: +61 2 4801 0685 / 0439 135 915 Ph: +61 2 4801 0685 /
0439 900 965
James Moses
Professional Public Relations
Ph: 0430 038 338
E: jmoses@ppr.com.au
To
download the media release click here.
ABN: 48 008 031 034
20 Merrigang Street
PO Box 846
Bowral NSW 2576
Tel: 61 8 9485 0140
Fax: 61 8 9486 4944
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