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Gladiator Resources to advance Bankable Feasibility Study at Isla Cristalina with $6.1m raising

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Gladiator Resources (ASX: GLA) has revised its previously announced rights issue and is now aiming to raise A$6.1 million through a renounceable rights issue to advance the Bankable Feasibility Study on the Isla Cristalina pig iron joint venture project in Uruguay.

Importantly, CPS Securities has been joined as joint lead manager by Patersons Securities, which has agreed to fully underwrite the rights issue.

The company is offering about 101.5 million shares at $0.06 each, a 33% discount to yesterday’s closing price and a 42.54% discount to the 30 day volume weighted average price of Gladiator’s shares.

Under the revised rights issue, shareholders can subscribe for nine fully paid ordinary shares for every 11 held, and will receive one free attaching option for every new share, exercisable at $0.10 on or before 30 June 2015.

Gladiator also plans to use the money raised to fund ongoing exploration, engineering and metallurgical testing and working capital. 

The company has allocated $3 million of the funding to the Bankable Feasibility Study at Isla Cristalina.

Upon completion of the study Gladiator can acquire an additional 29% interest in the project from Orosur Mining, increasing the company’s interest to 80%.

Resource drilling on the Cerro Papagayo and Papagayo Ridge magnetite deposits covered 314 holes for over 27,000 metres at the end of 2011, with some very encouraging results being delivered to the market.

Highlights so far from Papagayo include: 87 metres at 35.7% magnetite containing 67.8% iron, 65 metres at 39.1% magnetite containing 67% iron, and 62 metres at 36.4% magnetite containing 67.8% iron.

Quick facts: Gladiator Resources Ltd

Price: 0.001 AUD

ASX:GLA
Market: ASX
Market Cap: $2 m
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