Hillgrove raises $6.375 million

24 June 2008 | 04:54 Code : 17612 Geoscience events
Hillgrove Resources Ltd announced that it had raised new capital of $6.375 million...

  Hillgrove Resources Ltd announced that it had raised new capital of $6.375 million cash, through the issue of 25.5 million fully paid ordinary shares at 25 cents per share, for working capital and the continuation of preliminary works for the Kanmantoo Copper/Gold Project near Adelaide.The new equity has been placed with two sophisticated international investors, Ras Al Khaimah Minerals & Metals Investments and existing shareholder Sempra Metals & Concentrates. RMMI is an initiative of Ras Al Khaimah Investment Authority, the nodal agency that oversees investment activities in the Emirate of Ras Al Khaimah, UAE.Sempra has been a key supporter of Hillgrove and is itsargest shareholder.Mr David Archer, Hillgrove’s Managing Director said yesterday, “The capital raising is part of a programme designed to launch the Kanmantoo Project as a copper producer in 2009.This funding will allow the company to complete all the necessary approvals up until the expected completion of project financing”Hillgrove recently announced the appointment of international investment bank, Merrill Lynch Ltd to arrange the Kanmantoo project financing.Mr Archer continued, “Having Sempra and RMMI as two substantial shareholders matched with Merrill Lynch arranging finance means the Kanmantoo Project has a heavy weightteam”.With long lead time items already ordered, the Kanmantoo Project has a short 12 month construction period which will allow production of copper concentrates for the export market to commence in mid 2009.Hillgrove is an Australian resources company listed on the Australian Stock Exchange focused on developing its South Australian base and precious metals projectsThe Company possesses an exploration portfolio covering over 970km² within the Kanmantoo Trough and the Gawler Craton, recognised among Australia’s most prospective regions for copper and gold.

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