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Lefroy on the lookout

Wednesday, 22 November 2006
Michael Vaughan

SHARES in Lefroy Resources jumped almost 50% today on news the company has appointed Corporate and Resource Consultants (CRC) as advisors, primarily to search for "quality assets for acquisition".



John Canaris, chief executive officer of Lefroy Resources

Concurrently, Lefroy announced a cash injection of $600,000 by CRC taking a placement of 3 million shares priced at 20c each with a free attaching option exercisable at 25c by June 2009.

The monies add to Lefroy's current cash balance of $7.3 million.

Lefroy chief executive John Canaris told MiningNews.net investors have been wanting the company to diversify away from its Lefroy gold project in Tasmania for some time and the move was a strong indication of the company's intention to do so.

Canaris refused to comment on the type of project Lefroy was considering other than to say the company was not restricting itself to gold exploration.

He described CRC as a group of seasoned, senior exploration geologists with a wide range of expertise and contacts both within Australia and internationally.

The relationship will be managed by Moto Goldmines president Klaus Eckhof.

Lefroy is also offering existing shareholders an options issue at a price of 1c per option. Shareholders will be offered one new option for every two shares held, exercisable at 25c by June 2009.

The placement and the options issue will be subject to shareholder approval at Lefroy's AGM in West Perth next Tuesday.

Shares in Lefroy closed up 8.5c (48.6%) at 26c with more than 3 million shares changing hands.

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