Fox Resources Ltd
Monday, July 16th, 2007
Fox Resources Ltd is pleased to announce that 98% of ASX listed options with an exercise price of $0.75, which expired on 30 June 2007 have been converted to shares, with total proceeds of $17.7 million received to date. The shortfall of only 2% (563,433) of total options issued will be placed with Tricom Equities Limited in accordance with the Underwriting Agreement as announced on 13 June 2007.
Foxâ€™s Managing Director, Mr Don Harper, said the exceptionally high conversion rate for these options was a vote of confidence from the Companyâ€™s shareholders.
â€œWe are delighted with this support, and are committed to delivering value through a three pronged strategy of metal production, project development and strategic explorationâ€, said Mr Harper.
The proceeds from the funds raised will be used primarily to:
â€¢ Improve the Companyâ€™s processing operation at Radio Hill to increase nickel and copper metal production
â€¢ Fund the completion of the Feasibility Study for the Sholl B2 nickel and copper project to extend the mine life of the Radio Hill operations
â€¢ Fund the completion of the Feasibility Study on the Whundo copper-zinc resources, including West Whundo, Whundo and Ayshia using the existing Elizabeth Hill processing facility to create a second revenue stream
â€¢ Implement the Companyâ€™s strategic near mine exploration program to discover additional nickel, copper and zinc resources to maintain metal production through the Radio Hill and Elizabeth Hill processing facilities
â€¢ Fund regional exploration on the new Mt. Oscar Iron Ore Prospect and the De Beers tenements
â€¢ Provide working capital.
â€œWe will soon have two processing facilities that can act like magnets to attract ore bodies that could potentially lie on the surrounding 3,000 km2 of tenement holdingâ€, he said. â€œThis fits well with our focus of being a producer and processor of metalsâ€.
Fox is fully funded, unhedged, and through the Companyâ€™s flagship Radio Hill operations, producing a positive cashflow.