View to raise A30 million as growth continues

first_imgView Resources is raising money to support its short term capital requirements as it moves towards positive cash flow and dual income from both gold and nickel by the first half of 2008. The funds raised under the Institutional Placement will be used for: – Development and working capital for the Carnilya Hill mine scheduled to start this month.Development and working capital for Bronzewing which includes further pre-stripping of the Central pit and access development of the Discovery underground, accessing additional reserves.Further exploration and tenement acquisition at Bronzewing.Debt reduction of the Investec Loan Facility, allowing the company greater freedom and flexibility to achieve its strategic goals.Costs of the Institutional Offers. Managing Director Tim Gooch: “The quick transition from explorer to producer at both Bronzewing and Carnilya Hill is extremely exciting for us and provides an excellent spring board as we progress our goal of becoming a mid-tier mining house. These funds will allow the company to meet its short term capital commitments as we recommission our gold and nickel projects in parallel and provide further funds for future exploration and regional consolidation. By the first half of 2008 View will be deriving positive cash-flow from both projects, however we are already looking to increase mine life at Bronzewing and Carnilya Hill as well as seek other growth opportunities”. More recently View announced the recommissioning of the Carnilya Hill nickel project and mobilization to site has commenced for a July 2007 start. The recently announced feasibility study based on reserve of 14,000 t of nickel in situ provides an extremely robust project with total costs of $6.50/lb. View has a 30% stake with its JV partner Mincor the remaining 70%. The company has successfully recommissioned its 100% owned Bronzewing Gold Project, pouring the first gold in May this year and is now focussed on ramping up to its full production averaging 120,000oz/y by the end of the July quarter. In addition it is seeking to increase its resource base with its own expanded exploration program and through continued consolidation with its neighbours within economic trucking distance of Bronzewing.last_img read more