PERTH (miningweekly.com) – Junior Gateway Mining will raise A$7-million through a share placement to institutional and professional investors to fund exploration work at its Gidgee gold project, in Western Australia.
The placement comprises the issue of 437.5-million shares, at a price of 1.6c each, with the company’s largest shareholder, Kerry Harmanis, subscribing for A$1-million of the placement.
The shares will be issued in two tranches, with the first 332-million shares falling within the company’s existing placement capacity, while the remaining 105.43-million shares, including the 86.3-million to be issued to Harmanis, subject to shareholder approval.
Gateway MD Peter Langworthy said on Tuesday that the strongly supported capital raising was one of the most important in the company’s recent history, putting it in an outstanding position to fast-track exploration and resource growth programmes at Gidgee at an opportune time in the Australian gold sector.
“The placement, together with existing cash reserves and a potential share purchase plan, which the company is also currently preparing, will ensure that we can give the Gidgee project the sort of systematic exploration focus and attention it deserves over the next two years.
“The outstanding response from investors to this raising reflects the outstanding base we have already established at the Whistler and Montague deposits, the exceptional pipeline of targets we have delineated in recent months, and the opportunity to create a significant new gold asset in a Tier 1 location through successful exploration.”