Frontier gets $6m boost

FRONTIER Resources Limited has signed a $6 million placement into Frontier with Forise Investment Sydney Pty Ltd.
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Staff Reporter

Forise Investment Sydney, a subsidiary of one of the largest non-bank financial institutions in China, has signed for A$6 million worth of new Frontier shares at A1.6c per share. 
This represents 78% of total shares on issue post placement and 84% fully diluted.
The placement will be subject to completion of an independent expert report, Australian Securities Exchange and Australian Securities and Investments Commission regulatory approvals, and an extraordinary general meeting to obtain shareholder approval.
Frontier's board will continue as is until completion of the placement, after which Frontier will appoint Forise's elected directors to the board.
All options held by Frontier's directors and consultants will be cancelled upon completion of the placement. Debt owed to Frontier chairman Peter McNeil by Frontier will convert into Frontier shares at the same price of A1.6c.
McNeil said Frontier's board unanimously supported the agreement and recommended shareholders approve the transaction at the forthcoming general meeting.
"Forise Investments is a subsidiary of an internationally, highly reputable, Chinese diversified business house," he said. 
"I believe that we have negotiated an excellent agreement, and will also continue with exploration in Papua New Guinea."
Frontier owns 100% of the Bulago and Muller exploration licences, both prospective for copper and gold. 
The loan facility makes A$50,000 immediately available to Frontier for near term corporate and exploration costs.