Australian explorer launches share purchase plan to buy Queensland tin project

6th March 2009 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

JOHANNESBURG (miningweekly.com) – ASX-listed exploration company Icon Resources has invited shareholders to take part in a share purchase plan, in an effort to raise $916 000 through the issue of about 18,3-million shares.

Icon shareholders would be entitled to purchase up to $10 000 worth of shares, at a price of $0,05 a share. If fully subscribed to the maximum allowable 30% of its issued capital, Icon would raise its target to $916 000.

The share purchase plan came after Icon decided to develop its Mount Carbine tungsten project, in Queensland. The company had been investigating opportunities to acquire a processing plant to fast-track the project, and the search resulted in an agreement with diversified group Metals X, to acquire its north Queensland Collingwood tin project.

The Collingwood assets included a processing plant suitable for Mount Carbine.

Icon would purchase the Collingwood project for $3,75-million, on a three-year, future-date convertible note, with a floor price of $0,05. After these terms were agreed to, Icon decided to extend its share purchase plan to its shareholders.

The funds obtained from the share raising would be used to pay the cash component of the Collingwood purchase, which was estimated at $250 000, and to trail test batches of both Mount Carbine and Collingwood tailings, as well as to supply general working capital.

Icon stated this week that the Collingwood project had a number of attractions, not least of which were the widely held positive long-term prospects for tin, and the significant known and potential tin mineralisation at the project.

The initial bench tests have suggested that the Collingwood tailings could also be profitably treated, and that the plant might be able to produce an immediate cash flow from the treatment of these tailings, while site preparations were being carried out at Mount Carbine.

The company further stated that it was currently in discussions with parties interested in retreating the Mount Carbine tailings in partnership with Icon, and added that the recent acquisition of Collingwood had been received as a significant positive addition to the project.

“The company is also in discussions with a number of tungsten producers which have expressed an interest in more involvement in the Mount Carbine, than just a simple offtake agreement. These entities are mostly interested in the larger project, that is the tailings plus the subsequent hard-rock mining.”