Avoca completes $29 million raising

In what has been continuously described as a difficult market to raise funds, gold miner Avoca Resources has exceeded its $25 million capital raising target with stock issued at a slight discount to its share price.

Avoca said today that it had raised $28.9 million through the issue of 20.5 million shares at $1.47 each to new and exsiting Austalian, North American and European institutional investors.

It said the share price was at a 4 per cent discount to its last traded price of $1.535 before the raising was announced.

RBC Capital Markets was the sole lead manager to the placement.

Avoca plans to use the funds for the construction of a $15 million plant at the Trident project to produce a cement-like paste to be placed into the void at the completion of mining individual areas in order to maximise the extraction of the high grade ore.

The remaining funds will be used for working capital.

Shares in Avoca closed down 2.5 cents to $1.51 today.