Beadell secures A$25m for Tucano

28th March 2013 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Gold junior Beadell Resources has secured A$25-million in funding through an institutional placement to continue the development of its Tucano gold project, in Brazil.

An institutional bookbuild set the placement price at 91c a share, which was a 3.2% discount to the last closing price of Beadell shares on March 27, and was equal to the five-day volume-weighted average price.

“We were extremely pleased with the level of interest in the placement,” said Beadell MD Peter Bowler.

“The placement was exceptionally well supported by both new and existing institutions and we welcome them on board.”

Bowler said that the company was continuing to progress its 100%-owned Tucano project, which recorded strong operational cash flows during the first three months of production, with throughput and recovery results exceeding expectations.

“Our magnetic separation plant is nearly complete and is tracking slightly below budget, with commissioning to start in late April. Our approval for the ultrahigh-grade oxide deposit, Duckhead, are progressing very well, with full approvals expected over the coming weeks.”

Currently, some 200 000 oz of gold production was planned at Tucano during 2013.