Aquila upgrades iron ore estimates
Aquila Resources Limited (AQA) shares surged more than 10% Monday as the company announced the JORC resource estimate at its joint venture West Pilbara Iron Ore Project had increased to 156 million tonnes from a mid-2007 estimate of 62.9Mt. Shares also drew strength from the company's declaration that it planned to issue bonus shares to its shareholders.
Commenting on the bonus shares issue, the company said it was doing so as a means to recognise the significant progress that the company has made in its coal, iron ore and manganese projects over the last 12 months and the Strategic Co-operation with Baosteel Group Corporation.
The company said the entitlement is to be issued for nil consideration and would be distributed on the pro rata basis of “one for every ten” ordinary shares held by existing shareholders at the Record Date of 9 December 2009.
Additionally, Aquila said the free entitlement is intended to encourage greater liquidity in its shares which in turn, should improve the likelihood of the company being included in the ASX/100 Index.
Meanwhile, in a separate release to the ASX, the company said that it updated iron ore reserves, at 61.47% Fe, followed the completion of ‘an extensive reverse circulation drilling program'.
A pre-feasibility study is under way to determine the viability of developing the Hardey Deposit at an annual production rate of up to 10Mtpa, Aquila said.
As at 1045 AEDT, Aquila shares were up $1.14c to $10.91.
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