Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Gold Road Resources on Friday announced that it would raise about A$23.2-million through a share placement to institutional and sophisticated investors.
The miner would place some 77.3-million shares, at a price of 30c each, to raise the capital.
The funds raised, along with existing cash reserves, would allow the company to target resource expansions at its flagship Gruyere project, in Western Australia, as well as to expand its regional exploration activities by testing several new targets identified during the year.
“Our 2014 maiden 3.8-million-ounce resource at Gruyera was achieved as a result of a measured exploration programme undertaken by our exploration and technical team, who delivered ounces at less than A$2/oz and within ten months of the initial discovery,” said Gold Road executive chairperson Ian Murray.
He noted that the success of this capital raising would now allow the company to build on recent exploration success and to focus on maintaining Gold Road’s primary objective to grow shareholder value by unlocking the Yamarna belt’s gold endowment.
“The pipeline of work to be undertaken by Gold Road over the next 12 months on the Yamarna belt, in Western Australia, means that we are in for a very exciting year ahead,” Murray said.