PERTH (miningweekly.com) – Gold developer Genesis Minerals has raised A$5-million through a share placement to fund ongoing resource drilling at its Ulysses gold project, in Western Australia, in an effort to expand the project.
The company will issue up to 178.57-million new shares, at a price of 2.8c each, to institutional and sophisticated investors. The shares will be placed under Genesis’ existing capacity, and will not require shareholder approval.
MD Michael Fowler said on Thursday that he was pleased with the strong level of investor support received for the placement, which reflected the quality of Ulysses.
“Drilling has been continuing since the October resource update, with additional results expected over the coming weeks, and we intend to increase the pace of drilling in early 2019, targeting extensions of the deposit both along strike and down plunge,” Fowler said.
“We will also test a number of priority regional targets, and aim to drill out a potential oxide resource at Orient Well.”
A recent scoping study on the Ulysses gold project found that an underground operation could produce some 358 000 oz over a four-year period, with capital costs for the project estimated at A$84.4-million.