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Mindax Tops Up Cash Balance

Mindax (ASX: MDX) has grown its cash reserves by A$399,000 with the conversion of a Convertible Note to fund exploration at the company's projects and provide working capital.

Following the approval of the conversion at the company's AGM last week, Mindax issued 4.7 million shares to Ms Lai You, an existing shareholder of the company and related party to non-executive director Andrew Tsang.

These new funds will build on the A$2.2 million in cash Mindax had at the end of the September 2012 quarter.

Mindax has had a busy last half of the year, recently undertaking optimisation work on the Scoping Study for its Mt Forrest Iron Project and executing a farm-in agreement for its Meekatharra North Gold Project.

A large amount of work was conducted to optimise the previously released Mt Forrest Scoping Study.

Work mostly concentrated on further fine tuning and tightening of capital and operating costs as well as a significant amount of work on a Conceptual Production Schedule which could increase the annual output and provide a longer mine life.

The aim of the Conceptual Production Schedule model was to make optimum use of the variety of regolith iron material available at the project while staging the capital requirements of the project to improve project financial returns.

Meanwhile, in October Mindax successfully negotiated a farm-in agreement for the Meekatharra North Project that will provide for a minimum of $500,000 to be spent on exploration before August 2013.

A further A$2 million can be spent over the next three years for the farm-in partner to earn 51% equity in the project. Mindax will continue manage the project during the earn-in period.

An exploration program has been developed for the initial $500,000 which will be reviewed with the joint venture partner and, once approved, drilling will begin with planned activity commencing in the March quarter of 2013.

The project is highly prospective and adjacent to the recent gold find by Doray Minerals (ASX: DRM) at Andy Well.

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