PERTH (miningweekly.com) – ASX-listed Stonewall Resources will raise A$6-million through a private share placement to fund the feasibility study of its Theta Hill gold project, in South Africa.
Shareholder Fineway Creation will subscribe for A$1.5-million in shares, representing some 166.6-million fully paid ordinary shares at a price of 0.9c each, while Chinese billionaire Mingliang Zhu will also subscribe for A$4.5-million in shares over two tranches.
The first tranche of shares will consist of more than 27.7-million shares, priced at 9c each, and will raise A$2.5-million, subject to Stonewall shareholders agreeing to a ten-for-one share consolidation.
The second tranche placement will raise a further A$2-million, and shares will be issued at a price equal to the 20-day volume weighted average share price immediately before the allotment of the Tranche 2 shares. Stonewall was expecting to issue some 22.2-million shares under the second tranche.
The funds raised will allow Stonewall to complete the feasibility study for the Theta hill opencut feasibility study and strengthen the company’s financial position.
A recent scoping study into the project has shown that it could support a production of 67 000 oz/y over an eight-year mine life, with capital costs for the project estimated at $16-million.