Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Gold Road Resources has raised A$10-million through a share placement to existing and new institutional and sophisticated investors.
The explorer reported on Friday that it had placed 57.1-million shares, at an issue price of A$0.175 a share, to raise the capital. The issue price represented a 12.5% discount to Gold Road’s last trading price, and an 11% discount to the ten-day volume-weighted average price of the company’s shares.
The funds raised, along with existing cash reserves, would be used for an aggressive exploration programme at the Gruyere prospect, in Western Australia, as well as additional regional exploration along the Dorothy Hills trend and other high-priority Gold Camp targets.
Gold Road executive chairperson Ian Murray said that the strong demand for the placement reflected the potential of the Gruyere prospect, and the Yamarna greenstone belt.
He said the company was looking forward to advancing the Gruyere discovery, as well as undertaking the systematic testing of the other high-grade priority Gold Camp targets within the Yamarna belt.