22/09/2009 - 09:29

Apex to raise $100m for restructure

22/09/2009 - 09:29

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Shares in gold miner Apex Minerals are in a trading halt ahead of a capital raising expected to raise $100 million to support the company's proposed recapitalisation and restructure.

Shares in gold miner Apex Minerals are in a trading halt ahead of a capital raising expected to raise $100 million to support the company's proposed recapitalisation and restructure.

Half of the proceeds of the renounceable rights issue will be used to retire outstanding debt, leaving about $50 million in cash for working capital and to fund mine development.

It is understood major creditor Goldman Sachs will partly underwrite the issue of new shares and is fully supportive of the proposal, as is 8.7 per cent shareholder Baker Steel Capital.

"The proposal will allow Apex to implement the results of a recent operational review," it said in a statement today.

The review concluded that the company will produce over 140,000 ounces a year once its Wiluna mine is fully ramped up.

Apex is seeking to improve efficiencies at the Wiluna mine in the Mid West after adverse ground conditions at the Calais orebody hampered gold production in July and August.

"The review will also result in Apex diversifying its sources of ore production from one zone to four, enabling it to avoid a repeat of the operational issues experienced in the middle of this year," Apex said.

The mine's output is expected to average 10,000 ounces a month until ore production commences from the Wilsons deposit around April next year, with a target of 12,500 ounces a month thereafter.

The shares last traded at 9.8 cents.

Apex said it may require a voluntary suspension in the trading of its shares to allow it sufficient time to complete the various agreements and arrangements relating to the proposal.

Shares in Apex last traded at 9.8 cents.

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