JOHANNESBURG (miningweekly.com) – Perth-based gold producer Beadell Resources on Monday announced it had received commitments to raise A$50-million in a share placement to domestic and international institutional and sophisticated investors.
The company would place 256.4-million shares at A$0.195 a share, which was a discount of 5.1% on its five-day volume weighted average price.
CEO and MD Simon Jackson said the placement was an important step for Beadell, delivering a strong balance sheet that would provide the company with the flexibility needed to pursue growth opportunities, while continuing to focus on mining profitable ounces.
The funds raised would be used to fund exploration activities aimed at further increasing Beadell’s mining inventory, to strengthen its balance sheet, including the possible retirement of some debt, and for general working capital purposes.
Hartleys is the sole lead manager for the placement.
Beadell’s primary asset is the Tucano gold project, in Brazil. The company also has a portfolio of key gold exploration tenements throughout Australia and Brazil, including the prospective Tropicana East project, located adjacent to the Tropicana gold deposit, managed by Anglogold Ashanti, in Western Australia.