Barra to raise $7m for start-up at new WA gold mine

Imminent Western Australian gold producer Barra Resources has plans to raise $7 million to complete start-up obligations and move to production at its Burbanks underground gold project near Coolgardie in WA.

Barra managing director Dean Goodwin said that the funds would also be used to pursue continued development work and a 4,000 metre diamond drilling program around the newly discovered southern extension at Burbanks.

"That diamond drilling is additional to the recently completed successful drilling program, from which we expect to later this month announce a substantial increase in the existing Burbanks gold resource base," he said.

The two tiered capital raising announced today, provided through stockbroker, Patersons Securities Limited, involves:

- $3 million via a placement of 12 million Converting Notes which, subject to shareholder approval, will convert to ordinary shares at a conversion price of 25 cents per share
- $4 million via the underwriting by Patersons of 20 million currently listed options exercisable at 20 cents each, a 29 per cent discount to today's price, before August 31 this year.

"The market clearly likes both our increasingly strong reserve and resource profile at Burbanks and our start to mining within weeks of a commodity attracting close to record prices," Mr Goodwin said.

"We can now fully focus on the operational demands needed to bring Burbanks into gradual full production over the September quarter, delivering Barra our first gold revenues."

The Burbanks project currently contains an Indicated and Inferred Resource of 255,000 tonnes at 4.3 grams per tonne gold for 34,700 ounces.

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BARRA ATTRACTS $7 MILLION TO FINALISE START-UP AT NEW W.A. GOLD MINE

A $7 million placement and options underwriting package has been announced by imminent gold producer, Barra Resources Limited.

Barra's Managing Director, Mr Dean Goodwin, said today that the funding package would be used primarily to complete start-up obligations to first production within weeks from its Burbanks underground gold project near Coolgardie in Western Australia.

"It will also fund continued development work and a 4,000 metre diamond drilling program around the newly discovered southern extension at Burbanks where recent intersections included 23.6 metres grading 10.6 grams per tonne gold," Mr Goodwin said.

"That diamond drilling is additional to the recently completed successful drilling program, from which we expect to later this month announce a substantial increase in the existing Burbanks gold resource base."

Barra's two tiered capital raising announced today, provided through stockbroker, Patersons Securities Limited, involves:

- $3 million via a placement of 12 million Converting Notes which, subject to shareholder approval, will convert to ordinary shares at a conversion price of 25 cents per share. This represents a 10% discount to Barra's share price today of around 28 cps.

- $4 million via the underwriting by Patersons of 20 million currently listed options exercisable at 20 cents each, a 29% discount to today's price, before 31 August this year.

"The market clearly likes both our increasingly strong reserve and resource profile at Burbanks and our start to mining within weeks of a commodity attracting close to record prices," Mr Goodwin said.

"We can now fully focus on the operational demands needed to bring Burbanks into gradual full production over the September quarter, delivering Barra our first gold revenues," he said.

"This includes commencing development work to enable mining of the existing gold resource below Burbank's Lady Robinson Pit."

The Burbanks project currently contains an Indicated and Inferred Resource of 255,000 tonnes at 4.3 grams per tonne gold for 34,700 ounces.