PERTH (miningweekly.com) – Gold miner Beadell Resources will raise $23-million through a share placement to institutional and sophisticated investors to fund the mill expansion at its Tucano mine, in Brazil.
The first tranche of the share placement will consist of some 76-million shares, with attached unlisted warrants, which will be issued at a price of 8.3c each. Each full warrant would entitle the holder to subscribe for one new ordinary share at a price of 8.15c each.
$4.1-million worth of 6% senior secured convertible debentures, due at the end of June 2023, will also be issued under the first tranche.
The second tranche, which will be subject to shareholder approval, will consist of some 124-million shares, and $6.4-million worth of debentures.
In addition to the capital raise, Beadell will also undertake a share purchase plan to raise a maximum of A$7-million. Shareholders would be allowed to subscribe for up to A$15 000 worth of new shares, at an issue price of 7c each.
Beadell said on Monday that the funds raised would allow the company to retain its current long-term debt structure while fully funding the ongoing mill expansion, which was expected to be completed within budget by July this year.
“We are delighted to have received the support of a number of international institutional investors, including our major shareholders. We believe that this financing package is the most competitive available in the current market place and provides the company with the maximum flexibility moving forward,” said Beadell MD and CEO Simon Jackson.
Beadell was spending $27.6-million to upgrade its Tucano plant, that would allow the plant to process a mix of sulphide and oxide mill feed and to process head grades in line with the reserve grade, consistently. The modifications to the plant will also allow for an increase in forecast recoveries from 88% to 93%, and a more steady gold production profile and increased free cash flow.