Capital Raising by cortona resources

Cortona Resources (CRC) announced a $10.3 million capital raising last week aimed at accelerating development of its Dargues Reef gold project in NSW, 60 kilometres east of Canberra.

Predictably, the shares fell from their week’s high of 20¢ to as low as 14¢ after the company confirmed a planned share placement at 15¢ to an “international funds manager” at 15¢ to raise $2.5 million.

Fully underwritten renounceable 1-for-2 rights issue at 15¢

Proceeds of the new capital raising will be used to underpin a Definitive Feasibility Study (DFS) on the Dargues Reef main lode, part of the 100%-owned Majors Creek Gold Project within the company’s 700 square kilometres of exploration tenements The DFS is scheduled for completion by the end of 2010 with first production targeted for mid-2011.

Official website :

Cortona Resources Limited

http://www.google.com/finance?q=ASX:CRC

Cortona is a Perth based exploration company with a quality portfolio of projects in NSW and Western Australia, global gold resources of around (…)
www.cortonaresources.com.au/

While the initial project may appear on the small side, the upside for the company is the drill-testing to be carried out on other identified targets within a few kilometres of Dargues Reef. They lie mostly within “the shadow of the headframe”, according to Cortona’s managing director, geologist Peter van der Borgh. Initial drilling on five such targets has recovered promising gold intersections, such as 19 metres of 5.6g/t at the Tory Boy prospect, two kilometres from Dargues Reef.

Cortona resourcesrecently completed positive scoping study on a potential $30 million underground mine at Dargues Reef, based on and indicated and inferred resource of 1.44 million tonnes of 6.2 grams per tonne (g/t) for 286,000 ounces.

LINKS:

Cortona Resources News

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