Jan. 25, 2011 - Beacon Hill Resources Plc, the AIM listed resource company, is pleased to announce that the directors have approved the next stage of a work programme for its Arthur River Magnesite project in north-west Tasmania. The programme, which will include the first drilling to be undertaken by the Group on the asset, will span the next six months and will advance development of the Project ahead of the completion of a Feasibility Study in 2012.
The proposed drilling programme has been approved by Mineral Resources Tasmania as well as by Environment Australia, part of the Federal Government, pursuant to the Environment Protection and Biodiversity Conservation Act.
Justin Lewis, Executive Chairman said, "We continue to make strong progress with our Arthur River magnesite project. Our team has been pursuing a defined work programme to advance the project towards the feasibility stage and this new drilling campaign and the analysis of existing data will provide Beacon Hill with a clearer understanding of the deposit in terms of size, make-up and hydrology."
In order to fund this next stage of the work programme the Company has placed 5,000,000 new ordinary shares of 0.25 pence each at a price of 18.8 pence per share with Fortrend Securities Pty Limited. In addition, the Company has granted Fortrend options over 1,250,000 ordinary shares exercisable at 20.9p per share for a period of 3 years. Following their admission, the enlarged issued share capital of the Company will comprise 615,554,956 ordinary shares.
The Placing is inter alia conditional on admission of the Placing Shares to trading on AIM ( Admission') which is expected to occur on 28 January 2011.
The proposed drilling programme has been approved by Mineral Resources Tasmania as well as by Environment Australia, part of the Federal Government, pursuant to the Environment Protection and Biodiversity Conservation Act.
Justin Lewis, Executive Chairman said, "We continue to make strong progress with our Arthur River magnesite project. Our team has been pursuing a defined work programme to advance the project towards the feasibility stage and this new drilling campaign and the analysis of existing data will provide Beacon Hill with a clearer understanding of the deposit in terms of size, make-up and hydrology."
In order to fund this next stage of the work programme the Company has placed 5,000,000 new ordinary shares of 0.25 pence each at a price of 18.8 pence per share with Fortrend Securities Pty Limited. In addition, the Company has granted Fortrend options over 1,250,000 ordinary shares exercisable at 20.9p per share for a period of 3 years. Following their admission, the enlarged issued share capital of the Company will comprise 615,554,956 ordinary shares.
The Placing is inter alia conditional on admission of the Placing Shares to trading on AIM ( Admission') which is expected to occur on 28 January 2011.
