PERTH (miningweekly.com) – ASX-listed Genesis Minerals will raise A$11-million through a share placement and share purchase plan (SPP) to underpin the next phase of growth at its Ulysses gold project, in Western Australia.
The company on Thursday announced that it had received firm commitments for the placement of some 166.7-million shares, at a price of 6c each from professional and sophisticated investors, to raise an initial A$10-million.
The company would also undertake an SPP at the same price, offering shareholders the opportunity to purchase up to A$30 000 worth of additional shares, to raise a further A$1-million.
The offer price represented a 4.8% discount to Genesis’ last closing price, and a 7% discount to the company’s ten-day volume weighted average share price.
MD Michael Fowler said that the proceeds from the capital raise would be used to ensure that the company was fully funded to advance the expanded Ulysses gold project.
“Investors can look forward to a two-pronged approach of strong exploration news flow as we embark on an aggressive drilling push aimed at expanding the existing 1.6-million-ounce resource plus an emerging development story as we complete our feasibility studies.
“The upcoming exploration programme will see 40 000 m of reverse circulation and diamond drilling aimed at growing the resource to the next level, plus 25 000 m of air-core drilling targeting new discoveries within the Ulysses to Orient Well mine corridor and the new Puzzle-Puzzle North corridor,” said Fowler.
The feasibility study for the Ulysses project is targeted for the second quarter, with an investment decision due in the fourth quarter.