Good news for HLM neighbor, Coventry Resources.
HLM’s Tib Lake PGE Property is located 15km away from North American Palladium’s Lac des Isles Mine and concentrator near Thunder Bay, and its West Cedartree Gold Project is located 12km away from Coventry Resources 1M oz.+ Cameron Gold Project near Kenora.
$5 MILLION PLACEMENT
Coventry Resources Limited (ASX: CVY and “the Company”) is pleased to announce that it has received commitments to raise $5 million through the placement of 41.67 million new shares at a price of $0.12 per share (the “Placement”). Casimir Capital LP is lead broker for the Placement.
The shares will be placed to North American institutional investors that are clients of Casimir Capital as well as Australian institutional and sophisticated investors that are clients of Blackswan Equities.
The Company plans to use the proceeds from the offering to:
? Complete a prefeasibility study at its 1.4 Moz Cameron Gold Project in Ontario, Canada;
? Continue mine permitting activities at the Cameron Gold Project;
? Implement further drilling programs at the Cameron Gold Project to continue to evaluate potential extensions of the Cameron Gold Deposit as well to further evaluate numerous high-priority regional prospects that have been delineated within the Project;
? Undertake an inaugural diamond drilling program at the Rainy River Project to follow-up on geochemical anomalies that may be delineated in the current RC drilling overburden sampling program;
? Continue to pursue additional strategic growth opportunities.
The Placement will be completed in two tranches:
? The first tranche will comprise the issue of 25.92 million shares (approximately 62% of the Placement) under the Company’s 15% capacity. This tranche will settle on or about April 10, 2012.
? The Company will seek shareholder approval at a general meeting to be held on or around May 9, 2012 to approve the second tranche for the remaining 15.75 million shares (approximately 38% of the Placement). Subject to shareholder approval this tranche will settle on or about May 16, 2012.
The Placement was made without a prospectus or other disclosure document to investors under Section 708A of the Corporations Act.
It is contemplated that a “cleansing notice” under Section 708A (5)(e) of the Corporations Act will be given to the ASX immediately following the issue of the shares.
Mike Haynes
Executive Chairman
