Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner A1 Consolidated's share price increased by 37.5% on Wednesday after the company announced a A$2-million investment from Minderoo Resources, led by mining magnate Andrew Forrest.
“The cash injection from a well-funded and highly respected group in Minderoo should be welcomed by all shareholders. It is a significant vote of confidence in the company and our assets,” said A1 MD Dennis Clark.
“More importantly, it brings extremely well credentialed people to the table as we look towards a much bigger future for the company.”
Minderoo would provide the majority of the recently announced A$2.5-million convertible note placement, announced in April.
The funds received from the placement would provide a funding condition precedent for the acquisition of the Maldon gold project, in Victoria. The Maldon project was acquired from Octagonal Resources in November last year, in exchange for A$5.1-million A1 shares. The acquisition included the 150 000 t/y carbon-in-leach processing plant.
A1 said on Wednesday that the introduction of Minderoo would also see the appointment of John Clout as a technical adviser to the A1 board, which would provide support as the A1 mine moved towards cash flow in the second half of the year.
Once cash flow has been achieved, Clout will assist in maximising the potential of the A1 mine, the Maldon gold operation, and the company’s other tenement holdings.
A1 shares were trading at a high of 4.4c a share on Tuesday, up from a low of 3.6c each.