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Mindax Raises A$399,000 Through Convertible Note

Mindax (ASX: MDX) has received further evidence of shareholder support after raising A$399,000 through the issue of a Convertible Note to an existing shareholder.

This follows on the company banking A$680,000 earlier this month from a recent share placement to sophisticated and professional investors of 8 million shares at A$0.085 each.

"We are delighted with this continued support from existing shareholders. It is a vote of confidence in the Company," managing director Steve Ward said.

The Note to Lai You, a related party to non-executive director Andrew Tsang, is commercially reasonable and considered by the Board to be at arm's length to Tsang.

Proceeds from the Note will be applied to the company's project activities and to provide working capital.

Convertible Note

Shareholder approval on or before the 2012 Annual General Meeting is required for the Note to be converted into ordinary shares and for interest to be payable.

Once approved, the Note can be converted into ordinary shares in the company priced at A$0.085 - a 37% premium on the last traded price - and will accrue interest at the rate of 10% per annum, capitalised monthly from the date of issue of the note.

If it is not converted, the face value of Note is to be repaid on 31 January 2013.


Mindax's main focus is on the Mt Forrest Iron Project and the Yilgarn-Avon uranium Joint Venture.

The company recently increased the total Resource for its Mt Forrest Project in Western Australia to 1.7 billion tonnes at 31.8% iron through the consolidation of the two magnetite resource models used for the mineralisation.

It is focused on fast-tracking the direct shipping ore stage of the Mt Forrest Iron Project, which will underpin the future development of the high quality magnetite resource.

Mt Forrest will be developed initially as a modest beneficiated DSO operation of 1.5 million tonnes per annum, with potential for first ore to be shipped in 2014.

Mindax is also working with Quasar Resources to search for roll front uranium in palaeochannels of South Western, Western Australia.

Scout drilling is ongoing along the Yilgarn palaechannel, within the Mukinbudin Project area 200 kilometres northeast of Perth.

Economic grades of roll front sedimentary uranium mineralisation were found rendering the area an emerging uranium province.

The joint venture partners have delivered a maiden JORC Inferred Resource of 3.2 million pounds at 0.02% uranium at the Mukinbudin Project, boosting the prospectivity of its other uranium projects in the Wheatbelt region.

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