PERTH (miningweekly.com) – Gold developer Emerald Resources will raise A$75-million through a share placement to fund development activities at its Okvau gold project, in Cambodia.
The company would place an initial 762.1-million shares at a price of 4c each, under its existing placement capacity, to raise A$30.4-million, with a further 1.11-billion shares to be placed, subject to shareholder approval, to raise a further A$44.5-million.
A shareholder meeting is scheduled for March 13.
The offer price represented a 9.1% discount to Emerald’s closing price on January 20, and an 8.7% discount to the five-day volume weighted average share price, as well as a 6.2% discount to the ten-day volume weighted average share price.
“We are delighted with the response from investors to this milestone moment for the company. We have strengthened our register with globally recognised institutional shareholders with demand to participate in the placement well in excess of shares available,” said Emerald MD Morgan Hart.
“The support demonstrates the robust nature of the Okvau gold project, and the support for the company’s strategy of becoming the first modern large-scale Cambodian gold producer.”
Funds raised under the placement will allow for the continued development at Okvau while the company finalizes a $60-million project finance facility.
The Okvau project is expected to require a capital investment of $98-million to develop a two-million-tonne-a-year operation delivering about 106 000 oz of gold, over an initial mine life of seven years.
Meanwhile, Emerald on Friday said that it would also seek shareholder approval for a ten-for-one share consolidation, following the raising. Hart said that the consolidation would result in a more appropriate and effective capital structure for the company, and a share price that was more attractive to a wider range of investors.