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Cloncurry Metals halted on cash call
Posted on Tuesday, 22 February 2011 15:51
Australian base and precious metals explorer Cloncurry Metals is set to inform investors of a fundraising plan and has asked for its shares to be suspended.

The Brisbane-registered group has until 24th February to reveal its intentions, after which time its stock will resume trading. It gave no further details today.

The miner, which has projects in Mexico and Queensland, raised AUD 0.50 million (USD 0.51 million) in October last year from selling 15.60 million treasury shares ? more than a fifth of the company ? to its broker?s clients.

It listed in 2007 raising AUD 10.00 million from selling a 68.6 per cent stake on the Australian Securities Exchange.

On their first day of trading Cloncurry shares finished at AUD 0.35 apiece. They have since lost 77.1 per cent of their value despite closing 12.0 per cent higher yesterday and gaining 19.1 per cent on Friday.

The group counts Bar-Jonah Capital and Prima Group Holdings as its largest shareholders, with 7.6 per cent and 7.3 per cent stakes, respectively. Meanwhile, Bunting Exploration Services and private investor Peter Secker own more than 6.0 per cent each.

It is not clear if existing equity holders will maintain their stakes during the planned capital increase.

The junior metals miner announced its first revenue in the 12 months to 30th June 2010, generating AUD 1.23 million.

This came two years after it bought diamond explorer Global Resources ? and the El Rodeo project in Mexico ? for AUD 3.33 million.

Global?s selling shareholders got stakes in Cloncurry and the new company now counts El Rodeo as one of its main assets.

The south-west Mexico property has four primary and numerous secondary targets, all with the potential for major gold, copper and silver discoveries.

It is located on the highly-prospective Lower Tertiary copper belt, which is home to Mexico?s largest copper deposits.