Bullabulling Gold Limited
18 April 2013 ASX Code: BAB, AIM Code: BGL
ENTITLEMENT OFFER ACCEPTANCES
Bullabulling Gold Limited (the Company) advises that the
Entitlement Offer to the Company's shareholders closed at
5pm (WST) on 15 April 2013, in accordance with the timetable
originally announced on 14 March
2013.
Shareholders accepted 34,481,192 new fully paid ordinary shares
under the Entitlement Offer. 116,785,744 shares were not taken up,
however the Company has accepted applications from shareholders for
4,733,714 of these shares, taking total subscriptions to 39,214,906
and gross proceeds to $2,000,965*.
The Directors are pleased with the amount raised in what is a
very challenging equity market and at what proved to be a time of
extreme gold price volatility and thank shareholders for their
continued support of the Company.
Proceeds from the Entitlement Offer will be applied towards the
funding of the definitive feasibility study (DFS) for the
Bullabulling Gold Project. The funds that have been received are
sufficient to complete the key re-optimisation phase of the DFS.
This work is underway and is progressing well. It is expected that
re-optimisation will be completed and results (including a revised
economic assessment) announced by mid-year, at which point the
program for the remainder of the DFS and the associated funding
requirements will be reviewed.
As stated when the prefeasibility study (PFS) results were
announced on 7 February 2013, the
Company believes there is potential for the optimisation phase of
the DFS to demonstrate materially reduced cash production costs for
the proposed Bullabulling gold mine through the implementation of a
number of specific initiatives identified during the PFS.
In addition, results from the recently completed drilling
program at the Edwards and Gryphon prospects, that included a
number of high grade intercepts, will be used to update the
resource estimate for the project. This is expected to contribute
to an increase in mining inventory that can be incorporated into
the re-optimisation.
Recent expansion of the Company's technical capabilities will
enable principal components of the re-optimisation to be carried
out in-house in a very cost effective manner. Furthermore it
provides the ability to effectively assess a range of project
development options adapted to address various gold price
scenarios.
Application for Admission and Total Voting Rights
Application will be made for the 39,214,906 new ordinary shares
in the Company of no par value ("New Shares") to be admitted to the
ASX and AIM, which is expected to become effective on 24 April 2013.
Following admission of the New Shares, the total number of
issued ordinary shares will be 341,748,777. The Company does not
hold any ordinary shares in treasury. This figure may be used by
shareholders of the Company as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of
the Company under the Corporations Act (Australia) or the Financial Service
Authority's Disclosure and Transparency Rules (United Kingdom).
*Based on conversion of funds received from the United Kingdom using an
exchange rate of A$1.48 per GBP and subject to none of the subscription fee
cheques being dishonored.
For information, contact:
Brett Lambert Westhouse Securities Limited
Bullabulling Gold Limited (UK Broker & Nominated Adviser)
Level 2, 55 Carrington Street Martin Davison/Jonathan Haines
Nedlands, WA, 6009, Australia Tel: +44 20 7601 6100
Tel: +61 8 9386 4086
Neil Boom John Gardner / Rupert Dearden
Gresham PR Ltd (UK media) MAGNUS Investor Relations. Corporate
Communication. (Australian Media)
Tel: +44 7866 805 108 Tel: +61 8 6160 4900
jgardner@magnus.net.au
rdearden@magnus.net.au
About Bullabulling Gold Limited
Bullabulling Gold Limited is listed on the Australian Securities
Exchange (ASX: BAB) and London's
AIM Market (AIM:BGL) and has approximately 302.5 million shares on
issue. The Company's primary asset is the wholly owned Bullabulling
Gold Project, located near Coolgardie in Western Australia.
The Bullabulling Gold Project hosts JORC compliant Mineral
Resources of 3.5 million ounces comprising Indicated Resources of
71.7 million tonnes at 0.96 g/ t gold (2.2 million ounces) and
Inferred Resources of 32.8 million tonnes at 1.06 g/t gold (1.1
million ounces) at Bullabulling and Inferred Resources of 4.8
million tonnes at 1.15 g/t gold (0.2 million ounces) at
Gibraltar. Exploration has
demonstrated strong potential for further expansion of the resource
base.
The Bullabulling deposit is amenable to bulk tonnage open pit
mining and conventional CIL processing has delivered high gold
recoveries. The deposit is situated on granted Mining Leases in
close proximity to infrastructure.
The Company has recently completed a pre-feasibility study into
the development of a large scale, low cost mining operation at
Bullabulling and is now moving into definitive feasibility study.
First production is targeted for Q4 2015.
Competent Person Statement
The information in this report that relates to the Exploration
Results, Mineral Resources or Ore Reserves is based upon
information compiled by Mr Trevor
Pilcher, who is a full time employee of the Company and is a
member of The Australasian Institute of Mining and Metallurgy. Mr
Pilcher has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and the
activity in which he is undertaking to qualify as a Competent
Person under 2004 Edition of the Australasian Code for Reporting
Exploration Results, Mineral Resources and Ore Reserves (JORC
Code). Mr Pilcher consents to the inclusion in this report of the
matters based on his information in the form and context in which
it appears.