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PERTH, Western Australia, July 1 /CNW/ - Perth-based emerging copper miner Tiger Resources Limited (ASX/TSX - TGS) ("Tiger" or the "Company") is pleased to announce that it has closed the Share Purchase Plan ("SPP") on 24 June 2010 as scheduled.
The SPP offer has received significant support from shareholders, resulting in Tiger receiving acceptances for 49.3 million shares for gross proceeds of $8.9 million. Chairman Reg Gillard has commented "The response from shareholders to the SPP has been very pleasing, and shows we have an extensive and very supportive shareholder base. Shareholders clearly have a positive view on Tiger's prospects as it moves closer to becoming a copper producer at Kipoi."
Whilst it was initially proposed the SPP would offer a total of 10 million shares, the Company has considered the support shown by shareholders, expected funding obligations and potential opportunities, and determined it will not apply any scaleback.
Assuming completion of the second tranche of the share placement announced on 2 June 2010 (which is subject to approval by shareholders at the meeting being held on 15 July 2010), the Company expects to have cash reserves totalling $30 million. In addition the Company has arranged a US$15m loan facility from Trafigura Beheer B.V.
Based on the current funding arrangements the Company is in a strong position to meet project expenditure commitments for the Kipoi Stage 1 development and continue with further exploration drilling at a number of highly prospective exploration targets. The Company will also be in a position to pursue opportunities that may arise to enhance its position in the Katanga copperbelt.
The Kipoi Project covers an area of 55 sq kms and is located 75km north-north-west of the city of Lubumbashi in the Katangan Province of the DRC. The Project contains a 12km sequence of mineralised Roan sediments that host at least five known deposits: Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe. The Company has reported JORC standard resources at three of the deposits. The principal deposit is Kipoi Central which contains a zone of high grade copper mineralisation within a much larger lower grade global resource. The Company proposes a staged development at the Kipoi Project. The high grade zone of mineralisation at Kipoi Central is proposed to be exploited during the Stage 1 development, which is intended to commence production at end of 2010. During the three year life of Stage 1 a total of 900,000tpa of 7% Cu is planned to be processed through a Heavy Media Separation plant to produce the equivalent of 35,000tpa of Copper.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Shares offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
Company website: www.tigerresources.com.au.
Caution Regarding Forward Looking Statements: The forward-looking statements made in this report are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements, including but not limited to those with respect to completion of the Tranche 2 A$11.8 million financing by way of private placement and the development of a Stage 1 mining operation at the Kipoi Project, involve 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 statements.
Such factors include, among others, assumptions that conditions precedent to completion of the private placement will be satisfied, risks related to mining operations, including political risks and instability and risks related to international operations, the actual market prices of copper, cobalt and silver, the actual results of current exploration, the actual results of future mining, processing and development activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's filed documents. There can be no assurance that the Kipoi Project will be successfully developed, that all of the funding required for the Stage 1 development will be available, that any mineralization previously disclosed in respect of the Kipoi Project will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified within the project or that future required regulatory approvals will be obtained
SOURCE Tiger Resources Limited
For further information: For further information: David Young, Joint Managing Director, Tel: (+61 8) 9240 1933, Email: firstname.lastname@example.org; Brad Marwood, Joint Managing Director, Tel: (+61 8) 9240 1933, Email: email@example.com; Reg Gillard, Chairman, Tel: (+61 8) 9240 1933, Email: firstname.lastname@example.org