The company has purchased a number of assets from Kin Mining's Leonora gold project.

Beacon raises $18m

Monday, 3 September, 2018 - 13:24

Beacon Minerals has raised $18 million via a debenture issue, with the proceeds expected to bring the company’s Jaurdi gold project into production next year.

Executive chairman Graham McGarry and managing director Geoff Greenhill have subscribed for $4.6 million of the issue.

The debt facility has a 12 per cent interest rate.

The raising had a minimum subscription of $100,000, with each debenture holder receiving 20 options for every $1 invested.

The options are exercisable at 2.5 cents each before August 2022, with 360 million options issued as part of the raising.

Beacon has 2.01 billion shares currently listed, along with 498.4 million listed options, not including the debenture issue.

The company released a pre-feasibility study for the Jaurdi project last week, which detailed a capital cost of $21.4 million.

The gold aspirant said the funds raised from the issue would be used at the gold project, including for the construction of a processing plant and a tailings storage facility, among other things.

“Subject to obtaining the necessary approvals at the general meeting, the proposed $18 million debenture issue will provide the company with funding to bring the Jaurdi gold project into production in Q1 2019,” the company said in a statement to the ASX.

The company has bought a number of assets from Kin Mining's Leonora gold project, which suspended construction earlier this year.

Beacon said the debentures would be secured by a mortgage against the Jaurdi project’s mining leases and security over the company’s plant and equipment used at the site.

The issue remains subject to shareholder approval.

Shares in Beacon were up 8.3 per cent at 2.6 cents each at 2.30pm AEDT.