March 18, 2008

Bonaparte to raise $2.3 million


by Jo Black

Australia-based Bonaparte Diamond Mines NL announces a non renounceable entitlements issue (Entitlements Issue) to raise up to $2.3 million before costs. The Entitlements Issue offers one new share for every four shares held at an application price of 7 cents per share.

The funds raised will be used to advance the pipeline of onshore South African diamond production properties and develop Bonaparte’s marine phosphate projects.

Bonaparte’s marine phosphate projects warrant increased attention as a result of the commodity cycle given the industry benchmark Moroccan export price of phosphate has reportedly increased to USD 350-400/t FOB. This is a leap from the $200/t December 2007 price and is a multiple of the $50/t of earlier in 2007.

As a result Bonaparte’s marine phosphate projects hold a significant latent value which will be assessed in the coming months. Some of the funds from the Entitlements Issue are earmarked for this work. Diamonds remain Bonaparte’s core business and the efforts of the year long acquisition strategy have resulted in a suite of projects which the Company will be developing to unlock their true value.

Story link: Bonaparte to raise $2.3 million




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