JOHANNESBURG (miningweekly.com) – Papua New Guinea-focused precious metals exploration company Gold Mountain has raised $2.3-million through the issue of four-million new shares at an issue price of $0.042 apiece under the company’s existing placement capacity.
The funds will primarily be used to advance exploration activity at its flagship Crown Ridge gold project, with a drill programme fast-tracked for December.
Gold Mountain will now seek shareholder approval to issue options to subscribers of the placement shares, at no additional cost, on the basis of one option for each two placement shares subscribed.
Each option is convertible into one ordinary share and exercisable at $0.055 apiece. The exercise period expires after 15 months from date of issue.
The company will also seek shareholder approval to refresh its placement capacity and allow it to raise a further $2-million.
Gold Mountain director Tony Teng said in a statement on Thursday that the company had received encouraging support for this placement.
“We are also fortunate to have an excellent dialogue with landowner groups in and around the project, and that Crown Ridge can be accessed easily by road, ensuring lower exploration costs.”