Thursday, Central China Goldfields Plc (GGG.L) said it has signed a Heads of Agreement with Auzex Resources Ltd., which provides an exclusive option to joint venture, with Auzex, the Bullabulling Gold Property in the Coolgardie Goldfield, Western Australia.
The company said it will subscribe for a A$1.5 million placement in Auzex at A$0.25 per share for an exclusive option over the Bullabulling gold property until 7 April 2010.
Under the placement, the company will be issued with 1.5 million shares immediately and a convertible note with a face value of A$1.125 million which will convert into 4.5 million Auzex shares at such time as Auzex obtains the requisite authority to issue such shares at a General Meeting of Auzex. Following completion of the placement, and upon exercise of the note, the company will own 12.9% of Auzex's issued share capital.
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