PERTH (miningweekly.com) – Gold miner WPG Resources will raise A$7.2-million through a share placement to sophisticated and professional investors to fund an expansion of its Challenger mill, in Western Australia.
WPG on Tuesday reported that shares for the placement had been priced at 4.8c each, a discount of 24.5% to the company’s 15-day volume-weighted average share price.
In addition, a free one-for-two unlisted option, exercisable at 8c each by June 2019, was also attached to the placement shares. These would be subject to shareholder approval.
WPG reported that the share placement would be followed by an entitlement issue to eligible shareholders, which would likely be in the range of one-for-eight.
Funds raised from the placement will be used to expand the mill at the Challenger operation, as well as for mine development, exploration and general working capital purposes.
WPG in its March quarterly report flagged the possible upgrade of the Challenger mill, which treats ore from the Challenger and Tarcoola mines. The miner said at the time that the plant could currently run at a capacity of between 600 000 t/y and 700 000 t/y and that this could be increased to 800 000 t/y with limited additional expenditure.