Beadell in $50m raising

Gold miner Beadell Resources has received commitments for a $50 million capital raising to fund exploration to build its mining inventory.

Beadell, which owns the Tucano gold mine in Brazil, will raise the funds through the placement of 256.4 million shares to domestic and international investors at 19.5 cents each.

The price is a 5.1 per cent discount to Beadell’s five-day volume-weighted average price.

Beadell shares were 12.5 per cent lower to 21 cents each just prior to the close of trade.

Chief executive Simon Jackson said the company received an overwhelming support for the placement from a wide range of investors.

“We see the placement as an important step for Beadell, delivering a strong balance sheet that provides us with the flexibility to pursue our growth objectives, including an accelerated exploration program, whilst continuing the renewed focus on mining profitable ounces, which deliver strong margins and strong operating cash flows,” he said.

The company also hopes to use some of the proceeds of the placement to pay off some of its $56 million in debt.

Hartleys acted as lead manager for the placement.