Prosperity Resources Limited is pleased to announce it has entered into an attractive transaction with Prufrock Partners Ltd which has invested just under one million dollars in the Company, and provide for the funding of an additional two million US dollars into the Masuparia ‘Contract of Work’, in Central Kalimantan, Indonesia.
Prufrock Partners Ltd is a Bahamas based hedge fund with international interests, including numerous mining investments.
Prosperity has completed a share placement of 8,724,000 shares at a price of $0.11 cents per share for an investment of $959,640 to Prufrock Partners Ltd. Prufrock will also invest up to US$2,000,000 directly into Golden Arrow Resources Ltd, the 85% owners of the COW to provide working capital for the upcoming 5,000 metre portable diamond drilling programme.
Prosperity will become a 10% shareholder in Golden Arrow Ltd by investing $550,000 and will have no further funding commitments to the Masuparia ‘Contract of Work’.
Prufrock and the other Golden Arrow Resources Ltd shareholders will provide assistance and resources to seek admission to the most favourable Stock Exchange Listing via an IPO for the minimum raising of five million US dollars in the near future, subject to drilling success. This relationship is a key to the realisation of the potential of the project.
Prosperity Resources Ltd’s Managing Director, Mr Ric Dawson said “This transaction allows the Company to refocus on its Australian iron ore and gold assets whilst still maintaining exposure to potentially substantial world-class copper and gold project whithout the heavy capital dilution to shareholders.”
“The Company will have 10% equity of Golden Arrow Ltd as well as the opportunity to purchase an additional 10% through a clawback before the IPO.”
The company is looking forward to the results from the upcoming diamond drilling programme on the Ongkang/290 Vein and Bunga Desa epithermal gold prospects that will commence in this quarter.
To view the complete Media Release on July 13, 2006 please Download it here.
For further information contact:
Ric Dawson (B) +618 9322 5872
Managing Director (M) +618 0418 892 128
Level 9, 190 St Georges Terrace Perth, Western Australia 6000
Phone: (+618) 9322 5872 Fax: (+618) 9322 5988 Email: firstname.lastname@example.org