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Ashburton Minerals Well Supported By Investors In Fully Underwritten Rights Issue

Ashburton Minerals (ASX: ATN) has received strong investor backing with an over 76% take-up of its fully underwritten non-renounceable one for five rights issue of 161.8 million shares at A$0.005 each to raise $809,255.

The take-up represents about 124.2 million shares, raising $616,185.

Importantly, the shortfall of 37.6 million shares will be placed with professional and sophisticated investors by underwriter Foster Stockbroking to raise the remaining $188,067.

Ashburton also recently completed a placement of $367,842, which combined with the new funds raised will be used to begin a drilling program at the Pokali prospect at the Mt Webb Project in Western Australia.

In October last year, the company discovered the largest copper anomaly so far at Mt Webb of 246 metres at 0.22% copper, but which includes a higher grade zone of 62 metres at 0.4% copper.

Using ground gravity and aircore geochemical drilling programs, the new anomaly was identified at the Pokali prospect, which is almost 400 metres in length.

Importantly, the geochemical drilling program also identified a number of gold anomalies in the central part of the project area, including a coincident gold-platinum-palladium anomaly.

This further confirms the untapped potential of the Mt Webb project for a range of commodities, highlighted by two drill holes located 1 kilometre apart intersecting gold - over an area that has not yet been geochemically tested.

The Mt Webb project comprises five exploration licences, totalling 1,270 square kilometres, in eastern Western Australia, abutting the Northern Territory border.

Potential Project Acquisitions

Money raised from the placement and rights issue will also go towards the ongoing evaluation of new opportunities to acquire an advanced project in the gold and copper sectors.

Managing director Tom Dukovcic previously told Proactive Investors the company is on the lookout for a gold focused project to replace the Obi Gold Project in Indonesia, where the company last year elected not to exercise an option to proceed to stage three.

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