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Market:	ASX
Sector:	General Mining
EPIC:	KOR
Latest Price:	0.15 (-3.33% )
52-week High:	0.40
52-week Low:	0.14
Market Cap:	12.76M

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Korab Resources

Korab Resources (ASX: KOR) operates organic phosphate rock and magnesium projects in Australia. Korab also holds shares in two gold mining companies Melrose Gold Mines and Lugansk Gold.

Korab Resources raises fast $2 million

Monday, September 28, 2009

Diversified miner Korab Resources (ASX: KOR) has raised a handy $2 million at 20 cents per share via a share purchase plan.

Topping up cash levels, the SPP closed oversubscribed within 16 days, receiving a strong response from shareholders.

Andrej Karpinski chairman of Korab said funds raised will be partly used for start up costs at the company's GeolSec phosphate rock organic fertiliser business, which is located 65 km south of Darwin in the Northern Territory.

The low capital cost GeolSec business is now fully funded to move into production in 2010. The GeolSec business can be developed as a simple quarrying operation, operating on a campaign basis of 4-6 weeks per year.

Projected output in year one is 15,000 tonnes per annum. This would generate a projected 1st year after-tax profit of around $3.5 million, and earnings of 4.4 cents per share, according to the company.

Targeted rampup is to 30,000 tpa, with a potential mine life of five years.

At the company's Bobrikovo gold mine, located within the Tethyan belt in eastern Ukraine, mining will recommence, with stockpiling of ore.

Funds raised will also assist mine design and commencement of mine permitting process at Melrose gold project which is located within the Wanganoo belt 160 km north of Leonora in Western Australia.

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