PERTH (miningweekly.com) – Gold miner Doray Minerals has raised some A$24.9-million through an institutional placement to fund near-mine exploration work and reduce its debt.
The company on Wednesday said that it had received firm commitments from new and existing institutional investors to take up about 46.1-million fully paid ordinary shares, priced at 54c each.
The offer price represents a discount of 7.7% to Doray’s closing price and a 9.4% discount to the ten-day volume-weighted average price.
Doray MD Allan Kelly told shareholders that the company was pleased with the interest received, and had welcomed a number of new shareholders from across the UK, North America and Asia.
“Along with providing us the security of a substantial working capital buffer during the ongoing Deflector ramp-up, this raising also provides a stronger balance sheet from which to negotiate a resculpting of our current debt repayment profile,” Kelly said.
Following the placement, Doray will have some 356.9-million shares on issue.