PERTH (miningweekly.com) – ASX-listed Citadel Resources was looking to raise up to A$250-million through an entitlement offer to existing shareholders.

Citadel said in a statement on Monday that it would use the funds raised from the rights issue for the development of its Jabal Sayid copper and gold project, in Saudi Arabia, as well as to cover corporate costs, project evaluation and exploration.

The Jabal Sayid project was on track for commissioning in mid-2011, the company reported.

The mine was expected produce about 57 000 t/y of copper in concentrate, and the average life-of-mine head grade through the concentrator will be 2 3% copper and about 0,3 g/t gold.

Citadel is a 70% shareholder in Bariq Mining, which holds the exploitation licence that covers the Jabal Sayid project. The exploitation licence has a 30-year term and does not require any royalty payments to the Saudi Arabian government.

Eligible shareholders would be invited to subscribe for three new ordinary shares, for every existing four Citadel ordinary shares held on June 24. The offer price of A$0,29 a share represented a 10,8% discount to the last traded price on June 18, and a 6,5% discount to the theoretical ex-rights price.

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