D'Aguilar Gold Limited (ASX:DGR) Updates On The AusNico IPO
D'Aguilar Gold Limited (ASX:DGR) Updates On The AusNico IPO
Brisbane, April 30, 2010 AEST (ABN Newswire) - D'Aguilar Gold Limited (ASX:DGR) announce further to the previous announcement of 23 April 2010, the Directors are pleased to provide a further update regarding the upcoming IPO of its 79% subsidiary AusNiCo Limited.

Following the IPO raising of A$4 million at 20 cents per share, AusNiCo will have approximately 110 million shares on issue, with D'Aguilar retaining 72 million shares (approximately 65%). This structure will provide D'Aguilar with a significantly higher holding value for AusNiCo than was the case with the proposed merger of AusNiCo with Lions Gate Metals Inc (CVE:LGM).

Given the strong resurgence in the underlying Nickel price over the past six months, early subscription interest received by the Board and Management indicates that the entire A$4 million will be successfully raised under the IPO. The raising is expected to provide for:
Partial reimbursement of costs to D'Aguilar  A$550,000
Costs of the IPO and Fundraising             A$400,000
AusNiCo Administration                       A$800,000
AusNiCo Exploration and Development        A$2,000,000
Working Capital                              A$250,000
The Board is aiming to achieve the IPO as soon as practicable, by making use of existing independent reports and the advanced status of documentation associated with the proposed transaction with LGM. Independent management is in the process of being installed, with AusNiCo having already appointed a full-time Exploration Manager, who is continuing the exploration work on the AusNiCo tenements funded by D'Aguilar.

Following the IPO, the exploration and development focus of Ausnico will continue to be on sulphide discovery at Pembroke and Mt Cobalt, which has already returned an exploration drilling result of 50m @ 0.34% Nickel, including 4m @ 1.1% Nickel. The style of mineralisation is based on the Avebury deposit in Tasmania, owned by Allegiance Mining prior to its A$840m take-over by Zinifex in 2008. At Avebury 172,000 tonnes of contained nickel was defined (refer footnote) and later developed at grades of approximately 1% nickel, and concentrates containing more than 20% nickel were produced.

Footnote: Reference 22 October 2008, Oz Minerals Ltd. Presentation to the Australian Nickel Conference. Resources for the Avebury project were stated at Inferred Resources 9.6mt @ 0.88% Ni, Indicated Resource 6.05mt @ 1.01% Ni and measured Resource 2.37mt @ 1.03% Ni, giving a combined total of 18.18mt @ 0.95% Ni.

About DGR Global Limited

DGR Global (formerly D’Aguilar Gold Limited) (ASX:DGR) is focused on generating exploration and development companies in a wide array of minerals.

Projects are conceived directly through the skills and experience of D’Aguilar’s accomplished team of exploration geoscientists (with an enviable track record), not by the costly purchase of properties. Each project or exploration strategy is held in a separate subsidiary.

Focused and specialist management is then engaged in the subsidiary, with project specific finance raised in the subsidiary – faster and less dilutive to D’Aguilar. As the subsidiary project develops and starts to derisk the subsidiary is separately capitalised (seed raisings followed by an IPO).

Investors can choose to invest specifically in a particular project/commodity, or by investing in D’Aguilar, invest in the resource company generating business which retains a significant carried interest in each project.

D’Aguilar projects tend to be very large, targeting new provinces with the potential to make world-class discoveries. The exploration concepts are often novel. While increased metal prices and advances in technology can turn former sub-economic deposits into viable projects, D’Aguilar subsidiary projects frequently emerge from detailed reassessment and reinterpretation of large databases – looking at things from a new angle and with a different focus using state of the art techniques. The D’Aguilar Directors and Managers have in the past applied new exploration models to extensive tenement areas which have led to identification of new mineral provinces and the discovery of nationally significant resources. Similar efforts are now being dedicated to D’Aguilar.

 


Contact

KM Schlobohm
Company Secretary
Tel: +61-7-3303-0680
Email: info@daguilar.com.au



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