Augur Resources plans to raise $6m for gold/copper projects

Australian firm Augur Resources will raise up to A$6 million to primarily fund further exploration activity at the Jampang gold project and the Wonogiri gold/copper project in Indonesia.

The funds will be raised through a placement of up to 30.0 million shares at an issue price of $0.20 per share to international and domestic clients of Joint Lead Managers Hartleys Limited and Patersons Securities Limited, the company announced on Tuesday.

The funds raised pursuant to the Placement will be used:
? to further exploration activity at the Wonogiri project, also located in Java, which is owned by PT Oxindo Exploration and PT Alexis Perdana Mineral, companies which Augur has a conditional option agreement to acquire an 80% interest in the Wonogiri project;
? to further exploration activity at the Jampang project, located in Java, which is owned by PT Golden Pricindo Indah, a company in which Augur has a conditional option agreement to acquire a 90% interest in the Jampang project;
? to continue to search for additional advanced projects in Indonesia; and
? for working capital purposes.

The placement will be completed in two tranches with up to 20.3 million shares being issued in tranche one pursuant to the Company?s 15% capacity under ASX Listing Rule 7.1 and the balance of up to 9.7 million shares being issued in tranche two, subject to shareholder approval at a General Meeting of shareholders currently scheduled for June 30, 2011. (romel)