/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICE OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES/
PERTH, Western Australia, April 3, 2012 /CNW/ - Lachlan Star Limited (the "Company") (ASX: LSA) (TSX: LSA) today announced the completion of the previously announced private placement of 10,975,000 special warrants (the "Special Warrants") at CDN$1.60 per Special Warrant, raising gross proceeds of CDN$17,560,000 (the "Offering").
The private placement was sold to a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including Dundee Securities Ltd., Raymond James Ltd. and GMP Securities L.P.
Each Special Warrant will be automatically exercisable into one ordinary share (an "Ordinary Share") of the Company for no additional consideration after closing on the earlier of (a) the date on which a receipt for a final prospectus (the "Qualifying Prospectus") qualifying the Ordinary Shares to be issued upon the exercise of the Special Warrants has been issued by the relevant securities commission(s), or (b) 120 days following closing. The Company has agreed to use its commercially reasonable efforts to obtain, within 30 days after closing of the Offering, a receipt for a Qualifying Prospectus qualifying the Ordinary Shares.
The Toronto Stock Exchange has conditionally approved the listing of the Ordinary Shares issuable upon exercise of the Special Warrants, subject to the Company fulfilling customary post-closing deliveries.
The Company intends to use the net proceeds from the Offering for the continued development of the Company's CMD Gold Mine and for general working capital purposes.
About Lachlan Star Limited
Lachlan Star Limited is an emerging minerals exploration and development company headquartered in Perth, Western Australia. The Company is focused on acquiring and developing assets within the gold and copper sectors within Australia and Chile. The company has a board of directors and management team with an impressive track record of advancing resource projects through to production.
Lachlan Star's current projects include a 100% interest in the CMD Gold Mine in Chile, a 100% interest in the Bushranger Copper Project in New South Wales (subject to Newmont earning 51%) and a 100% interest in the Princhester magnesite deposit in Queensland.
Caution Regarding Forward Looking Information:
This new release contains forward-looking information, which is based on assumptions and judgments of management regarding future events and results. Such forward-looking information includes but is not limited to information with respect to future exploration and drilling, procurement of financing and procurement of necessary regulatory approvals.
Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Lachlan Star does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
For further information:
For further information please visit www.lachlanstar.com.au or contact:
Tel: +61(0)8 9481 0051
Tel: +61(0)8 9481 0051