Australian Gold Investments raises A$2m to advance bauxite projects

July 21, 2010 - Australian Gold Investments (AGV) has reported that the company has resolved to issue 29 million ordinary fully paid shares at an issue price of 7 cents per share to raise approximately $2 million.
The monies raised by the capital raising will be applied towards the progression of bauxite projects, and for working capital.
Hartleys Limited is broker to the Offer and has agreed to be remunerated with cash and shares in AGV, subject to shareholder approval.
Pnina Feldman, chairperson of AGV said we are very pleased with the strong response to the capital raising and we are looking forward to quickly moving the bauxite projects forward.
On 25 June 2010, AGV announced that the company had entered into binding agreements to acquire 80% of the South Johnstone bauxite province in Queensland and 80% of the Ravenshoe, Ravenshoe East and Atherton bauxite projects in Queensland (together, the Bauxite Projects), from Volcan Holdings Inc (OTCBB: VOHO), a NASDAQ / OTCBB listed company.
The Bauxite Projects are Exploration Licenses EPM18138, EPM18139, EPM18140, EPM18463 and EPM18464. The company will require shareholder approval to complete the acquisition of the Bauxite Projects.
AGV expects to complete the acquisition of the Bauxite Projects at a shareholder meeting to be held in September 2010.
The Bauxite Projects are located as close as 18 kms from the Mourilyan Port, with excellent regional infrastructure, access to mains power, and direct rail link to the main project area.The combined area of the prospective bauxite terrain on the Bauxite Projects is 672 sq. kms.
The acquisition of the interests of the tenements from Volcan will be acquired by AGV by issuing 65 million AGV shares and 65 million 5 year options exercisable at 5 cents, together with a royalty of $1 per ton on production.
The company will require shareholder approval to complete the acquisition as there are common directors across the AGV and Volcan boards and two of the common directors have shares in both companies.
A notice of meeting, explanatory materials and an independent expert report will be sent out to shareholders in due course in respect of a shareholder s meeting planned for September 2010.
The placement shares will be issued in one tranche subject to shareholder approval to be obtained at a general meeting of shareholders on or around 31 August 2010.