PERTH (miningweekly.com) – Gold miner Gascoyne Resources has resumed trading on the ASX following the completion of a A$125-million recapitalization programme.
As part of the recapitalization programme, Gascoyne undertook a capital raising which raised some A$85.2-million, with the miner telling shareholders on Wednesday that it now had a well capitalized balance sheet with a cash balance of over A$30-million while bank debt has been reduced to A$40-million.
“The team has achieved a great outcome for all stakeholders with Gascoyne’s reinstatement on the ASX. The fact that we are a Western Australia-based business has also meant very minimal impact from Covid-19 with no operational setbacks,” said CEO and MD Richard Hay.
“Furthermore, the results from our recent drilling programme highlighted the potential to enhance the mine life of our Dalgaranga operation.”
Gascoyne’s life-of-mine plan, based on the updated resource model and ore reserve, would see more than 6 000 oz a month of gold produced over a consecutive nine-month period.
As part of its new debt facility, Gascoyne would hedge a minimum of 40% of the forecast gold sales, in order to partially protect against adverse movements in the gold price.
The company has entered into forward sales agreement with Investec for some 46 000 oz, at a forward sale price of A$2 667/oz.