PERTH (miningweekly.com) – Gold developer Sumatra Copper & Gold would raise A$5.1-million through the placement of CHESS depository interests (CDIs) to professional and sophisticated investors.
Under the terms of the placement, Sumatra would issue more than 88.52-million CDIs, representing some 13% of the total CDIs on issue subsequent to the placement, at a price of 5.8c each.
Sumatra noted that some 44.2-million warrants would also be placed to investors, at no consideration. Each warrant would give the holder the right to subscribe for one CDI in the company. The warrant placement equates to one warrant per two CDIs to be issued under the CDI placement.
The warrants have an exercise price of 6c each, a term of two years, and would be nontransferable.
Both the CDI and warrant placement were being undertaken under Sumatra’s existing capacity, and would not require shareholder approval.
The company said on Thursday that funds from the raising would be used for the construction and development of the Tembang gold/silver project, in Indonesia.
The project was expected to produce its first gold by November this year. At full production, Tembang was expected to produce about 3 000 oz/y of gold and 345 000 oz/y of silver, at a cash operating cost of $470/oz.