Published on Tuesday Oct 26 2010
PERTH, Oct 26 AAP - AusAmerican Mining Corporation Ltd says it expects to raise $8.5 million from a capital raising that will fund its ongoing exploration for rare earths,specialty metals, uranium and gold in the US.
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The junior explorer last week said it had finalised a book-build for a share placement that would raise over $5 million and also intended to undertake a share purchase plan that could raise up to an additional $3 million.
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Chairman Jim Malone said about 40 per cent of the book-build had been supported by investors in Canada, where the company was considering a listing on the Toronto Stock Exchange.
"We may end up with $8.5 million from the raising," he told AAP on Tuesday.
"It allows us to have a real crack at these projects."
Mr Malone said there were plenty of opportunities in the US where the mining sector was heavy with majors that only sought big projects, leaving smaller viable projects available for junior players.
"The US in many ways had a fairly thriving mining industry until about 20 years ago and then they abandoned it to go overseas for cheaper imports for a lot of commodities.
"Surprisingly, the Canadians haven't jumped on the US - they've got so much to explore for in their own country and in Latin America.
"We find a lot of opportunities that the US has let go."
Mr Malone said the US had introduced legislation to assist in the development of rare earths and uranium projects given China controls almost all of the world's rare earths supply and the US contains one quarter of the world's nuclear reactors.
Mining and exploration permits were becoming easier to obtain as once-active environmental groups became more subdued and the nation battled to address high levels of unemployment, he said.
"We're finding that all of the problems of doing business in the US have gone away due to necessity," Mr Malone said.
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