Ram Resources raises A$3.2m to progress Motzfeldt multi-element project in Greenland

Ram Resources (ASX: RMR) has received a major vote of confidence on the company's operations with a new rights issue being fully underwritten.

Ram will raise around A$3.2 million from the three for every five rights, which equates to the issue of 358 million shares at $0.009.

Each new share also has one free attaching option exercisable at $0.03 with a 30 September 2013 expiry.

Ram will allocate the funds to exploration programs in Greenland and Western Australia, along with the part repayment of the company’s loan from Exchange Minerals FZE.

Patersons Securities is the lead manager and underwriter to the rights issue.

Greenland operations - Motzfeldt multi element project

Where the story gets very interesting for Ram at Motzfeldt, is that the company is aiming for a maiden Inferred JORC Resource.

A new drilling campaign at the project kicked off earlier in the month, which will include up to 19 diamond holes for around 3200 metres - targeting the Aries Prospect where historic drilling concentrated on the centre line of the mineralised zone.

Providing a prospectivity boost to Aries - Ram has previously intercepted high grade rare earth elements including; 25 metres at 5,031 parts per million (ppm) total rare earth oxides (TREO) and 20 metres at 4,852 ppm TREO.

Exploration has also showed that there was a significant strike length of mineralisation at the prospect that trended north-south for about 1.5 kilometres, of which about 200 metres has been drill tested.
Importantly, in 2010 work identified a potential REE dominant zone to the west of the drilled area at Aries.

After the 2011 field season, the company plans to conduct gravity concentration and heavy mineral recovery metallurgical testwork on material from Aries.

Western Australia operations - Telfer projects

Ram holds two exploration licences in Western Australia, which are strategically located near Newcrest Mining's (ASX: NCM) Telfer gold mine in the Pilbara.

Highlighting the potential of the area, Newcrest's Telfer contains resources of 19.5 million ounces of gold and 0.7 million tonnes of copper.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19085/ram-resources-raises-a32m-to-progress-motzfeldt-multi-element-project-in-greenland-19085.html