PERTH (miningweekly.com) – ASX-listed gold miner Eastern Goldfields is hoping to raise up to A$30-million through a number of share placements.

The company this week announced that it had entered into a binding agreement for a cornerstone investment of A$17.5-million from mining investor Hawke’s Point Holdings, under which that company would subscribe for some 87.5-million shares, at a price of 20c each.

Under the agreement with Hawke’s Point, Eastern Goldfields also had to secure firm commitments from other sophisticated and institutional investors to raise an additional A$12.5-million.

The company was now looking for interested parties to subscribe for a further 62.5-million shares, also priced at 20c each.

Eastern Goldfields executive chairperson Michael Fotios said that funds raised would be used to support the company’s ongoing operations at Davyhurst, in Western Australia, and to further progress exploration activities.

“This new investment is a strong endorsement of the quality of the assets and our overall strategy,” Fotios said.

All shares issued under the placement will be issued with a corresponding one-for-one free attaching unlisted option. The options will be issued in two tranches, with one-half of the options having an exercise price of 27.5c, and the other of 25c.

The share placement will also be undertaken in two tranches, with the first 42-million shares to be issued under Eastern Goldfield’s placement capacity.

The balance of up to 108-million shares will be subject to shareholder approval, with 87.5-million of the second tranche shares and options to be issued to Hawke’s Point and a further 12.5-million to Fotios or his related parties.

Following the completion of the placement, Hawke’s Point will hold a 12.2% interest in Eastern Goldfields, and will have the right to appoint a director to the company’s board, as well as an advisory representative to the technical steering committee. It will also be able participate in any future equity issues.