PERTH (miningweekly.com) – ASX-listed Calidus Resources will raise A$12.5-million through a share placement to fund work at its Blue Spec gold project, in Western Australia.
The junior on Thursday said that it had received firm commitments for the placement of some 31.25-million shares, priced at 40c each to professional and sophisticated investors.
Fellow-listed Alkane Resources, which is the company’s largest shareholder, will subscribe for A$1.28-million to maintain its shareholding.
The shares will be placed under the company’s existing placement capacity, and would not require shareholder approval.
“This highly successful raising enables Calidus to complete the Blue Spec purchase, which, in turn, opens the door to increasing production to a steady state run rate of 130 000 oz/y, growing cash flow in the process,” said Calidus MD Dave Reeves.
“While our focus remains on the successful commissioning of the Stage 1 Warrawoona project, which is on track to pour first gold in the new year, we will also progress Blue Spec to feasibility level. This will enable us to implement the increase in production with minimal delay once we are satisfied with the performance at Warrawoona.”
Funds raised would go towards completing the acquisition of Blue Spec, as well as drilling, feasibility studies and exploration, and costs associated with the acquisition and capital raise.