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Mindax Limited Raises Funds With Issue Of Convertible Note To Existing Shareholder

Mindax Limited (ASX: MDX) has raised $600,000 through the issue of a Convertible Note to existing shareholder Lai You to progress its existing projects.

The board considers the terms of the Note to You, a related party to non-executive director Andrew Tsang, to be commercially reasonable and at arm's length to Tsang.

"We are pleased to receive the support from one of our existing shareholders for these additional funds," managing director Dr Steve Ward said.

"We have built up considerable momentum on each of our projects and the funds will allow us to continue these programs in the short term. They are a further vote of confidence in our work and projects.

"We also continue to make good progress with our proposed Joint Venture for the Mt Forrest Project."

The unsecured Note carries a 9% annual interest rate, capitalised monthly from the date of issue of the Note until the date the Note is repaid.

The Note shall convert into ordinary fully paid shares at an issue price of $0.12 per share immediately following shareholder approval at the company's 2013 Annual General Meeting.

If not converted the face value of the Note is to be repaid on 31 January 2014.

The company had in July discovered new areas of iron mineralisation at its Mt Forrest Project and kicked off an extensive 6,000 metre drilling program at the Meekatharra North Gold Project. Both are located in Western Australia.

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