19/08/2019 - 13:18

Beacon raises $8m

19/08/2019 - 13:18

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Beacon Minerals has taken advantage of a strong run-up in its share price to raise $8 million through a share placement at 4.2 cents a share.

Beacon raises $8m
Cyanide facility and leach tanks at the Jaurdi gold project

Beacon Minerals has taken advantage of a strong run-up in its share price to raise $8 million through a share placement at 4.2 cents a share.

Its share price has risen strongly in the past fortnight, to as high as 5.4 cents.

The stock dipped slightly today to close at 4.8 cents.

Beacon will use the funds for its Jaurdi gold project and the recently optioned Stockdale tenement, as well as continue to evaluate external resource opportunities.

Ordinary shares will be issued at 4.2 cents a share, with Patersons Securities acting as lead manager to the placement.

Beacon said its strong investor support highlighted the quality and potential of its low-cost Jaurdi gold project, currently in the commissioning phase and nearing first gold production.

Full production is expected to be reached by the end of the 2019 financial year.

Managing director Graham McGarry said the company was excited at the development of the project over the past 2.5 years.

“Given that we have only explored 10 per cent of the paleochannel system, we are eager to explore the full tenement area,” he said.

Beacon also announced the appointment of former Jaurdi project manager Alexander McCulloch as executive director.

“The appointment of Alex to the board as our development director will significantly enhance Beacon’s objective of extending the current 5 year mine life by identifying, evaluating and developing value for money, organic growth opportunities,” Mr McGarry said.

“Beacon is in a very unique situation with the commissioning of the plant advanced and a large tenement area that has remained under explored.

“The board is pleased with the outcome of the placement and excited about the future of the company with a fast-tracked exploration program.”

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