PERTH (miningweekly.com) – Gold miner WPG Resources has announced a one-for-eight pro rata nonrenounceable entitlement issue, in the hopes of raising A$5.4-million to help fund the expansion of the Challenger mill, in Western Australia.
The new shares will be priced at 4.8c each, and will include one free unlisted option for every two subscribed shares, exercisable at 8c each by June 2019.
The entitlement issue is in addition to the A$7.2-million placement announced earlier this month, and will see WPG raise a total of A$12.6-million.
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.