Stonehenge Metals completes earlier placement of shares

Stonehenge Metals (ASX: SHE) has completed an earlier placement of 25,000,000 ordinary fully paid shares to strategic institutional investors.
The shares placed were approved at the Company’s General Meeting on 12 October 2009 and subsequently re-approved at the Annual General Meeting held on 25 November 2009.
The Placement was effected at an issue price of 1.5 cents raising $375,000 with the funds to be used to fund development of the Company’s projects and for working capital purposes.
Stonehenge was trading at 14 cents, up 3 cents.
This week Stonehenge entered into an agreement to acquire 100% of Chong Ma Mines Inc which holds the rights to 4 South Korean uranium projects.
Consideration is comprised of 10m Stonehenge shares plus 60m Stonehenge performance shares with A$3m to be spent on work commitments & purchase payments over 24 months including up to A$150k of expenses reimbursement.
The projects have an estimated resource of 56 million lbs (Mlb) of uranium oxide U3O8 at an average grade of 292 ppm.  Estimates were obtained by the Korean Institute of Energy and Resources in a 1986 report.
The company has commissioned Hellman & Schofield and Watts, Griffis and McQuatan for an JORC resource estimate and an independent geological report.
The Uranium Projects comprise 42 granted mining rights & 14 mining right applications.  http://www.proactiveinvestors.com.au/companies/news/4104/stonehenge-metals-completes-earlier-placement-of-shares-4104.html