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Gunson Resources Offers Share Purchase Plan; On Track To Complete Coburn Optimisation Study

Gunson Resources (ASX:GUN) is offering a share purchase plan to raise up to $1.5 million to progress the optimsation study at its Coburn zircon project in Western Australia.

The company is on track to complete the study, which is designed to meet the commercial condition required by South Korea's POSCO and its Korean resources investment fund partner to ink a joint venture deal.

The joint venture, when executed provides for the POSCO SPV to fund about 55% of the $192 million capital cost of the project to earn a 40% participating equity interest.

Under Gunson's share purchase plan, eligible shareholders will be allowed to buy shares for up to $15,000 at 6.5 cents each, representing a discount of 16% to the 5-day average prior to suspension of trading in its shares on 31 January.

Gunson's aim to tap shareholders with a share purchase plan comes after its efforts for a share placement met with limited uptake.

While there was significant interest in the placement, investors appeared to be waiting for commitment of POSCO and the Korean resources investment fund to invest in the Coburn project.

Some take up of the placement is likely from London this week.

The SPP will be open to shareholders on record on 8 February and will be open for three weeks until 6 March 2013.

It can be scaled back if applications exceed $1.5 million.

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