ADELAIDE, AUSTRALIA - 7 December 2010: Astra Mining Ltd have decided to issue a Prospectus in early 2011 for the raising of additional working capital to investors. This is the next stage of a rapid growth phase experienced by the company since its launch.
Astra Mining Ltd has a unique approach by seeking high quality prospects where the resource has been defined, the mining licenses in place, or in place within 6 months, and no major infrastructure investment is required to take the mined products to market. Astra Mining is not an exploration company but an acquisition and production company. After years of due diligence, the company located high quality resource targets in India.
"From an early stage we identified India as a prime target for Astra Mining. This is because India has very similar geology to Western Australia, has a track record of mining from colonial times with little exposure to multinationals who are insensitive to local needs. It is this local expertise that Astra Mining possesses that allows Australian investors to access the Indian mining market through an investment in the Company," said S.P.Singh, Astra Mining's Business Development representative in India.
In addition, Astra Mining owns 30% of the intellectual property in T-Steel and is the operator of the technology. T-Steel is a new manufacturing process for producing steel with greater strength, lower input cost and a significant reduction in the raw materials required for processing steel. "T-Steel is a compelling technology as it allows the output steel manufactured to be maximised from Iron Ore we produce", continued Mr. Singh.
The indicative valuations received by reputable independent sources on Astra Mining Ltd assets, especially T-Steel, are very significant.
Astra Mining will open the company registry to retail, private, sophisticated and professional investors but will not seek to list the company at this stage. Only upon the further development of the Company's assets and business will the Company list on a major international stock exchange or the ASX at a future date once key financial and operational indicators are exceeded.
"Given the ASX listing rules overhaul which are being discussed and the reasons for it, the directors have voted unanimously that it is not in the interest of shareholders to list a microcap company on the ASX at the moment", said Managing Director, Silvana De Cianni. "This prospectus launch in early 2011 gives us the ability to develop the company into mining-related revenues by acquisitions prior to listing to maximise the valuation in an IPO and implement the commercialisation strategy for T-Steel to maximise its valuation in an IPO. The reality is that a listing now would be premature though we see that will be our long term future".
"We are currently undertaking an interim funding round to capitalise the company for the Prospectus stage. We thank everyone to date who has backed us and we look forward to welcoming new shareholders into the company to join us on our journey."
It is anticipated the Prospectus will be ready for the market in February. Over the coming weeks and months, the Astra Mining website will receive executive summaries from reputable independent sources on all the various projects and strategies as the company nears the Prospectus release.
For further information on Astra Mining Ltd, please visit the website located at www.astramining.com
Adele De CianniP: +61 412 589 555