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Thundelarra's Chairman Shows Confidence With $500,000 Placement

Thundelarra (ASX: THX) will receive a cash injection of $500,000 from a placement of 14.7 million shares at $0.034 per share to Philip Crabb (or his nominee), a director of the company.

The issue price is the same as the recent share purchase plan, and is subject to shareholder approval.

The new funds will be allocated to new exploration at Red Bore and Curara Well, which are strategically located within a few kilometres of Sandfire Resources' (ASX: SFR) DeGrussa deposit in Western Australia.

The Curara Well project hosts 15 kilometres of the prospective Jenkins Fault Zone.

Funds will also be allocated to ongoing exploration at Allamber, Sophie Downs, Frank Hill, Copperfield and other projects as required, and also to costs associated with the Red Bore dispute.

Philip Crabb, chairman, commented: "My ongoing support for the company demonstrates my consistent and continuing belief in the company's prospects for success going forward.

"We are really excited by our core exploration targets and I can think of no better way of underlying the potential we believe these prospects have.

"In these very difficult market conditions in the resources sector where the company has implemented drastic cost cutting measures to reduce operating overheads which included reducing the surplus workforce, significantly reducing management and board remuneration levels and the rationalisation of surplus and non-core exploration projects within the company to ensure ongoing viability we need to lead by example."

Analysis

The investment by Philip Crabb is a major vote of confidence in the company's operations.

Funds will be allocated to Red Bore, which is located in one of the hottest exploration post codes in Australia being adjacent to Sandfire Resources' DeGrussa deposit, and other projects.

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