Perth-based miner Bass Metals says it is seeking to raise a further $8 million, after increasing its debt facility with RMB Australia Holdings by $13 million.
The Tasmania-focused gold and base metals miner announced today it would launch a 15 cents per share, one for three entitlements offer to existing shareholders, to raise a minimum of $8 million and up to a maximum of $10.7 million.
It also said it had received credit approval from RMB to extend its existing corporate loan facility to $26.6 million, due to be repaid progressively from June 30, 2014.
The RMB offer is conditional on Bass raising at least $8 million from the entitlements offer.
Bass said the funds would be applied to an aggressive exploration program at its Hellyer base metals operation in Tasmania and to evaluate the potential of recovering gold from tailings at the mine.
The company needed to recapitalise to reposition itself from unforeseen technical issues revolving around water in-flow and ore grades at Hellyer, which emerged in June.
Bass reported on Friday its revised plan for Hellyer had resulted in a cash-positive July-August period, while the mine de-watering upgrade was progressing well and the water in-flow rate was decreasing.
“These fundraising processing are anticipated to place the company’s operations completely back on track and ensuring an adequate working capital buffer for a business of the scale of Hellyer,” Bass said in a statement.
Bass Metals shares remain in a trading halt entered into on the 11th of July. The stock last traded at 22 cents.
The company said it would keep its shares suspended until “some degree of certainty” surrounding the entitlements offer is achieved.