Proactive Investor's  Instablog

Reed Resources (ASX: RDR) substantial shareholder U.S.-based Vanguard Precious Metals and Mining Fund continues to show confidence in the company's operations with the increase of its shareholding to 10.58%.

The fund invests at least 80% of its assets in the stocks of foreign and U.S. companies involved in the exploration and mining of gold, silver, platinum, diamonds and other precious metals.

Vanguard Precious Metals and Mining Fund acquired a further 25 million shares earlier this week for a total consideration of A$5 million, or $0.20 per share.

Highlighting the progress being made by Reed Resources, earlier this year the company made the momentous decision to mine at its Meekatharra Gold Project, with the first pour expected in the December quarter of 2012.

Stage one is targeting 95,000 gold ounces annually.

The Meekatharra Project hosts 3.59 million gold ounces, and Reserves of 750,000 ounces, a milestone not matched by many gold companies in Western Australia.

Reed is targeting a Reserve upgrade in the June quarter of 2012.

Strong financial support

Reed continues to attract financial backing from a number of sources as evidenced by the recent deal struck with Barclays Bank for A$23 million in finance for the Meekatharra Project.

Indicating the strength of the project, the company appointed Barclays after an extensive tender process in which competitive proposals were received from a number of domestic and international banks.

Earlier this month Reed also closed its fully underwritten $40 million non-renounceable entitlement offer.

The funds will be allocated to the development phase of Meekatharra, including accommodation facilities upgrade, plant refurbishment, infrastructure, pre-commissioning costs and capital raising costs, and for general working capital purposes.

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