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Gascoyne unveils recapitalisation plans

13th August 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Gascoyne Resources has unveiled a A$125-million funding package to recapitalize the company.

The company on Thursday announced that it will undertake a fully underwritten institutional placement and a two-for-one accelerated pro-rata non-renounceable entitlement offer to raise an initial A$85-million.

The institutional placement will consist of 1.4-billion shares, issued at a price of 2.5c each, to raise A$35-million, while more than two-billion shares will be on offer under the entitlement offer, to raise a further A$50-million.

In addition to the capital raise, the company has also secured a A$40-million debt facility with Investec Bank, with a three-year term and an interest of Australian Bank Bill Swap Bid Rate plus a margin of 5.25% a year.

Gascoyne CEO Richard Hay said that the landmark funding package was the culmination of significant hard work by the company and its advisers over the last 15 months.

“It will facilitate the recapitalization of the company and enable Gascoyne to pursue strategic growth opportunities with an enhanced balance sheet and funding capability.

“Importantly, the equity raising allows all existing shareholders in the company to participate in the recapitalization on the same terms as those participating in the placement. The equity raising has been structured to provide all existing shareholders with the opportunity to subscribe for the majority of the new shares to be issued,” Hay added.

Funds raised under the placement will be used to repay the company’s existing secured banking facilities, including an interest of some A$40-million, establish a minimum A$10-million cash reserve to meet the requirements of the finance facility, funding exploration activities and for general working capital.

Edited by Creamer Media Reporter

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