PERTH (miningweekly.com) – Gold developer Gascoyne Resources was hoping to raise up to A$15-million through the issue of around 50-million shares to fund the final stages of development at its Dalgaranga gold project, in Western Australia.
The shares will be priced at 30c each, representing a 16.7% discount to the company’s last closing price on August 15, and a 23.3% discount to its five-day volume weighted average price.
Gascoyne said that cornerstone investor LIM Advisors has committed to subscribe for 33.3-million new shares, for an investment of A$10-million.
The company noted that A$1.5-million of the raised funds will go towards the final payment to the Dalgaranga vendor, while A$6.5-million will go towards the remaining construction activities and critical spares for the mine.
Up to A$5-million will also be spent on exploration.
Mining at Dalgaranga started in March this year, and the A$86-million openpit operation is expected to deliver 623 000 oz of gold over its six-year mine life.