22/11/2017 - 14:08

$21m share placement for Gascoyne

22/11/2017 - 14:08

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Gascoyne Resources has raised $21 million through a heavily oversubscribed share placement to fund further exploration and development at two of its Western Australian gold projects.

Gascoyne plans to conduct further exploration at its Dalgaranga project.

Gascoyne Resources has raised $21 million through a heavily oversubscribed share placement to fund further exploration and development at two of its Western Australian gold projects.

Gascoyne will issue 56.5 million shares at 38 cents each, amid strong support from existing shareholders along with interest from major domestic and international investors.

Hartleys and Argonaut Securities acted as joint lead managers to the placement.

The proceeds from the share placement will be used for regional exploration at the company’s Dalgaranga gold project in the Murchison region and its Glenburgh project in the Gascoyne region.

Gascoyne said it intended to start aggressive exploration at both sites in the hope of extending the mine life at Dalgaranga while increasing the resource base at both.

Managing director Michael Dunbar said the company was aiming to bring Dalgaranga into production in the first half of next year.

“We have an aggressive exploration program planned to commence as soon as possible at both our Dalgaranga and Glenburgh projects, with the aim of continuing to extend mine life at Dalgaranga, building our resource base at Dalgaranga and Glenburgh, and targeting new discoveries,” he said

“With gold production commencing at our Dalgaranga Gold Project in the first half of 2018 and an aggressive exploration program on our highly prospective acreage about to commence, we look forward to delivering on an exciting phase for the Company as it progresses from developer to producer, and systematically drill testing the significant exploration potential of our two WA gold projects.”

Gascoyne said the finalisation of the debt facility for the development of the Dalgaranga Gold Mine was nearing completion, with two tier-one Australian banks mandated to arrange project financing, with formal facility documentation well advanced.

Gascoyne shares finished down 5.9 per cent at 40 cents each.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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