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Ashburton Minerals: capital raising to be fully underwritten


Ashburton Minerals (ASX: ATN) has secured an underwriting agreement for its recently announced non-renounceable one for five rights issue of 161.8 million shares at A$0.005 per share to raise $809,255.

Foster Stockbroking has agreed to underwrite the full amount.

Chairman Rick Crabb has also agreed to sub-underwrite the issue up to $200,000.

Included in the rights issue is an offer of 80.9 million free attaching options on the basis of one attaching option for every two shares applied for.

The options will be exercisable at $0.01 on or before 30 April 2014.

Ashburton recently completed a placement of $367,842, which combined with the new funds raised will be used to begin a drilling program at the Pokali prospect at the Mt Webb Project in Western Australia.

In October last year, Ashburton discovered the largest copper anomaly so far at Mt Webb of 246 metres at 0.22% copper, but which includes a higher grade zone of 62 metres at 0.4% copper.

Using ground gravity and aircore geochemical drilling programs, the new anomaly was identified at the Pokali prospect, which is almost 400 metres in length.

The company will begin its exploration program in the June quarter to test the new copper anomaly, which is defined by the 0.1% copper contour, and is substantially larger than prior copper anomalies in the vicinity.

The Mt Webb project comprises five exploration licences, totalling 1,270 square kilometres, in eastern Western Australia, abutting the Northern Territory border.

Potential Project Acquisitions

Money raised from the placement and rights issue will also go towards the ongoing evaluation of new opportunities to acquire an advanced project in the gold and copper sectors.

Managing director Tom Dukovcic previously told Proactive Investors the company is on the lookout for a gold focused project to replace the Obi Gold Project in Indonesia, where the company last year elected not to exercise an option to proceed to stage three.

"We are not ruling out Indonesia, as we have already built up significant contacts, and are looking for a project with the underlying potential to grow into a large deposit,” he said.

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