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Auzex Resources raises $3.2 million for Bullabulling Gold merger

Auzex Resources (ASX: AZX) has raised $3,203,625 to go towards the company’s merger with GGG Resources (ASX: GGB; AIM: GGG) which will form a new company, Bullabulling Gold.

The merger is expected to be completed by February 2012.

Auzex raised the money through a fully underwritten 1 for 5 renounceable rights issue which was offered at a price of $0.24 per share.

A shortfall of $1.4 million will be covered by the underwriter for the placement, independent financial services group BBY Limited.

This placement is part of a broader $8 million capital raising, with the successful placement of 14.3 million shares at $0.24 in October raising $3.4 million.

Once completed, the raising will fund the development of the Bullabulling Gold Project through to the completion of the merger with GGG.

The project is strategically located 65 kilometres southeast of Kalgoorlie in Western Australia.

At the end of the September quarter, Auzex had cash of $1.39 million.

Bullabulling Gold merger

The merger, announced earlier this year, will combine the 2.6 million ounce Bullabulling gold project under a single corporate entity.

The project is currently held in a 50:50 joint venture.

Bullabulling Gold will be Australian domiciled and listed on the ASX and AIM markets.

The deal will create an advanced exploration and pre-development gold-focused company.