Brisbane-based Auzex Resources (ASX: AZX) has reported that its...

Brisbane-based Auzex Resources (ASX: AZX) has reported that its recent rights issues seeking to raise approximately A$2.8 million to fast track the Bullabulling Gold Project in Western Australia to bankable feasibility, have closed oversubscribed.

John Lawton, managing director, said Auzex believes that the Bullabulling Gold Project will add significant value to the company in the future, particularly in light of the pleasing resource update and drilling results announced on 16 and 19 August 2010 respectively.

The rights issues comprised a renounceable rights issue for eligible shareholders of one share for every three shares recorded against the Eligible Shareholder's name on the Register on the record date, with one attaching option for every three Shares issued.

There was also a renounceable rights issue for eligible optionholders of one share for every three Options recorded against the eligible optionholder's name on the register on the record date, with one attaching Option for every three Shares issued.

Auzex received acceptances and applications for additional shares totalling AU$3.23 million and NZ$0.37 million.

Auzex's joint venture partner in the Bullabulling Gold Project, Central China Goldfields Plc, took up its full entitlement of AU$0.24 million.

The company said "Directors have resolved to use their discretion to scale back or reduce to zero the number of additional shares applied for by any eligible shareholder or eligible optionholder and to place shares not taken up under the rights issues as set out in the prospectus."

It is expected that the shares will be issued and options allotted on Friday 27 August 2010 and holding statements will be despatched on 30 August 2010.