Hill End Gold closes key $5m funding from Singapore company

Hill End Gold (ASX: HEG) will raise $5 million from Infiniti Premium Resources to support Hill End’s exploration to increase mineral resources from 557,000 ounces to over one million ounces at its Hargraves and Hill End Gold Projects.

Subject to shareholder approval, the subscription agreement will see Hill End issue 200 million shares to Infiniti, representing 29.16% of the enlarged issued capital of the company.

Singapore-based Infiniti is a closed-end fund specialising in investments in resource companies around the world.

The deal comprises two tranches, each involving the issue of 80 million shares for A$2 million, and a zero coupon Convertible Note for $1 million that is convertible to 40 million Hill End shares.

The convertible note is to be entered into within 14 days of execution of the agreement, payable in two tranches of A$500,000. The first tranche of the note must be paid immediately.

Meanwhile the first tranche of the private placement will be paid at the same time that the convertible note is converted, following approval from Hill End shareholders.

Payment of the second tranche of the placement is due 30 days after the first.

If the deal is approved, Infiniti will have the right to appoint one director to Hill End’s board after each of the two tranches.

In the event it does not gain shareholder approval, the convertible  note will be repayable six months after the shareholders meeting.

Hill End plans to hold a general meeting in early March 2012 to seek approval for the deal.

New South Wales gold interests
Hill End Gold has three advanced gold projects in New South Wales; Hill End, Hargraves and Red Hill, with resources totalling more than 550,000 ounces gold.

At Hargraves, the company plans to increase the mineable resource with targeted drilling and infill assaying.

Pre-development studies are underway.

Meanwhile, at the Hill End project, the company plans to complete a scoping study for an expanded Reward project.

It is targeting resource re-estimates at both the Reward and Red Hill prospects using a bulk mining approach.

Hill End Gold is also working to update the resource at Red Hill, following reverse circulation drilling in October 2011 that confirmed broad, low grade gold close to the surface.

Lachlan Exploration Licence

In addition to its existing projects, Hill End Gold recently applied for an exploration licence in the Lachlan Fold Belt, 40 kilometres east of Hill End.

Previous exploration in the area identified the Willandra prospect, a surface gold-arsenic soil anomaly that is 2 kilometres by 1 kilometre, and the Brigadoon structure, a mineralised northwest trending structure.

Surface sampling at the Willandra Prospect returned rock chip assays of up to 6.2 grams per tonne (g/t) gold, and up to 20.6g/t gold one kilometre north of the prospect.

Hill End is planning a program of mapping, sampling, ranking and drill testing on these targets, which have not been adequately drill tested.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24060/hill-end-gold-closes-key-5m-funding-from-singapore-company-24060.html