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Reed Resources Gains New Substantial Shareholder Ahead Of Meekatharra Gold Production

Reed Resources (ASX: RDR) has welcomed boutique investment manager SG Hiscock & Company as a substantial shareholder, with total holdings of 5.09% and voting power of 4.07%.

The fund manager has been buying up shares in Reed over the past four months at an average price of $0.20.

Reed is well supported by the market, reporting earlier today that substantial shareholder Vanguard Precious Metals and Mining Fund had increased its shareholding to 10.58%.

The company's decision mine at its Meekatharra Gold Project has attracted attention, not just from investors but also from financiers.

A recent deal struck with Barclays Bank for A$23 million in funding for Meekatharra followed an extensive tender process in which competitive proposals were received from a number of domestic and international banks.

The Meekatharra Project hosts a Resource of 3.59 million gold ounces and a Reserve of 750,000 ounces, a milestone not matched by many gold companies in Western Australia.

Reed is targeting a Reserve upgrade in the June quarter of 2012.

The first gold pour at Meekatharra is expected in the December quarter this year, with stage one of production targeting 95,000 ounces of gold annually.

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