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Ascot Resources To Raise Funds

Ascot Resources (ASX: AZQ) is preparing to launch a fundraising initiative and has placed its shares into an ASX trading halt.

The trading halt will last until the earlier of an announcement being made to the market, or the opening of trade on Monday 6th May 2013.

Ascot had recently revealed its plans to fast track development of the Titiribi coal project in Colombia.

Titiribi, which was acquired in mid-2012, is located in an established mining region within the State of Antioquia, Colombia only 70 kilometres from the State Capital Medellin, 10 kilometres from the town of Titiribi and close to all existing utilities and infrastructure.

The Project consists of 3 mining licences with an option over three more adjoining concessions that in total cover approximately 700 hectares and all within a region that hosts a number of coal bearing formations.

Ascot had expanded its Phase 1 drilling program that it started in January after continued intersection of significant coal seams within the El Balsal and El Silencio licence areas.

Significant coal intersections include cumulative thicknesses of 7.3 metres, 13 metres and 9.5 metres.

The 14 well program - up from the original 10 - will allow the company to more accurately correlate the multiple coal seams encountered within the concession areas and confirm their continuity.

This will in turn assist the company in delivering a mine planning study that is currently being undertaken as part of its overall Economic Study for the Titiribi Project.

The release of an initial Coal Resource estimate is targeted for the next quarter.

Ascot is trading at above 35% of its 31 March 2013 cash backing of $1.55 million, or $0.05 per share. Its current market capitalisation is $4.32 million with a share price of $0.145.

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