News blog

FinnAust Mining

• BY: Andrew Hore |
• POSTED: 29/10/2014 |

FinnAust Mining has raised £1.1m to accelerate its drilling programme on its three projects in Finland.

The shares were issued at 2.25p each, compared with a market price of 2.63p, which values the company at £7.78m. Western Areas subscribed for shares in the placing but its stake will be diluted in 60.3%.

The main focus is the Hammaslahti Copper-Gold-Zinc. At the beginning of October, FinnAust announced that mineralisation extends for at least 500 metres along strike and 125 metres east to west, although there are varying widths and grades. The most recent hole intersected 3 metres @ 1.2% copper, 0.39% zinc plus some gold and silver. There were also zinc discoveries above and below the copper. All seven drill holes have encountered mineralisation. The drilling of the next hole is underway.

Net cash was £1.58m at the end of June 2014. There was £1.5m in cash at the end of August and the £125,000 non-interest bearing loan from Western Areas.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2014_61.pdf