https://www.miningweekly.com

Gascoyne unveils recapitalisation plans

13th August 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

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

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION