21/02/2017 - 11:27

Beadell raises $51m for plant upgrades

21/02/2017 - 11:27

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Gold miner Beadell Resources has rattled the tin for $51 million to pay for plant upgrades and further exploration work at its Tucano mine in Brazil.

Beadell Resources' Tucano gold mine in Brazil.

Gold miner Beadell Resources has rattled the tin for $51 million to pay for plant upgrades and further exploration work at its Tucano mine in Brazil.

Perth-based Beadell has raised $46 million through the placement of 159 million shares at 29 cents each, and plans to raise a further $5 million by way of a share purchase plan at the same price as the placement.

“The support of our major shareholders allows us to continue exploration and mill upgrades that are vital to maximising the returns our shareholders will enjoy from the Tucano mine,” managing director Simon Jackson said.

“With a strong balance sheet, a virtually unexplored greenstone belt and a pathway to a fully optimised project with a long life and significant production profile, the outlook for Beadell is exciting.

“We are delighted with the strong support received from leading domestic and international institutional investors and in particular we are pleased with the backing of a major UK institutional shareholder as cornerstone investor to the placement.”

The upgrades to the mine plant include long lead items such as a ball mill.

Hartleys acted as lead manager to the placement, with Cormack Securities, CIBC World Markets and Canaccord Genuity acting as co-managers.

Beadell shares were 8.6 per cent lower to 31.5 cents each at 11:20am.

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