http://www.adxenergy.com.au/documents/...0and%20Nickel%20Projects.pdf 14th September 2010 Corporate Update – Divestment of Gold, Copper and Nickel Projects The Directors of ADX Energy Ltd (ASX Code: ADX) are pleased to provide an update in relation to the proposed divestment and Initial Public Offering “IPO” of the Company’s mineral assets portfolio. This strategy is in‐line with the previously stated intention of ADX becoming a highly focused energy company while ensuring that the necessary capital is secured to finance the exploration and development of its highly promising gold and base metals tenements. During the last four months, Company representatives have consulted with numerous parties in the finance and mineral exploration industry with the aim of determining the best way to maximise value from the mineral assets portfolio for ADX shareholders. This portfolio comprises properties highly prospective for gold, copper and nickel, offering substantial exposure to some of the most prospective exploration regions in Western Australia (see Figure 1), including; • the Millrose Gold Project in the Yandal Greenstone Belt, with; - Inferred Resources of 4Mt @ 2.4g/t Au for 309,000 oz of gold at 1 g/t cut off - significant upside potential to further increase this resource • the Marymia Copper‐Gold Project in the Peak Hill district; - located about 50km to the northeast of the recently discovered DeGrussa copper‐gold discovery by Sandfire Resources Limited - covers an entire basement high/greenstone belt and extensions to the Jenkin Fault, both of which are considered key elements in exploration targeting for DeGrussa‐type copper‐gold deposits. A summary of the key assets in ADX’s minerals portfolio is attached to this ASX release. A well funded, well resourced and aggressive exploration strategy is planned to commence immediately upon completion of the IPO. ADX has appointed Paterson Securities Limited “PSL” to act as Lead Manager to the IPO in a new entity named Riedel Resources Limited “Riedel”. Riedel has been incorporated to acquire all of the mineral assets of the Company by way of a share sale agreement, conditional upon successful application of Riedel for admission to the official list of the Australian Securities Exchange “ASX”. Riedel intends to raise a minimum of $5 million of new equity capital through its IPO in two parts, a Priority Offer to existing ADX shareholders and a Public Offer. ADX expects to retain a significant interest in Riedel following completion of the IPO, which is expected to be completed in November 2010. An experienced and talented management team is being assembled to coordinate and manage the IPO process and to then lead Riedel into its exploration and development programs. The final structure, timing and terms and conditions of the offer will be announced after further consultation between PSL, ADX, and Riedel. The Directors of ADX acknowledge that the manner, timing and pricing of the IPO is dependent on market conditions, which may change over time. Further details regarding the proposed offer, share subscriptions and the availability of a Prospectus will be advised in due course. |