Cloncurry To Raise $4.6m For Exploration

Sydney Morning Herald

Thursday December 3, 1992

By BRUCE HEXTALL Resources Writer

Investors wanting exposure to Australia's hottest exploration region will get their chance with the revitalisation of dormant mining junior Pegasus Mines NL.

Pegasus has been dressed up and renamed Cloncurry Mining Co NL in preparation for a new issue to raise $4.6 million.

Cloncurry will use the funds to conduct an intensive exploration in the Queensland mining district from which it has taken its name.

The prospectus for the issue, released yesterday, reveals a pure exploration play.

Cloncurry Mining currently has no income-producing assets but, in the past year, has assembled a package of exploration prospects within a 50km radius of the north-western Queensland town of Cloncurry.

Its managing director, Mr Malcolm Mayger, last year was moved to acquire five tenement packages ahead of a rush for land in the area. The rush followed a series of promising discoveries, including Western Mining Corp Holdings Ltd's major gold/ copper find - the Ernest Henry deposit.

Cloncurry owns 100 per cent of all its prospects, including the Great Australia prospect, which was continuously mined from 1871 to 1918.

The $4.6 million the company hopes to raise will come via a 3-for-1 non-renounceable rights issue to existing investors at 25c a share and a public issue of 12 million shares at the same price.

The issue opened yesterday and will close on December 16.

Funds will be used for an intensive drilling program due to start early next year and designed to prove up the area and move already defined resources into the reserves category.

More than 13,000 metres of drilling is scheduled for next year. The lion's share will be at Great Australia and the Paddock Lode within this prospect.

The share issue is being underwritten to the extent of $2 million by the Melbourne broker McIntosh and Company's corporate arm.

© 1992 Sydney Morning Herald

Back to News Index | Back to Home