Beadell Resources has launched a $25 million capital raising to pay off outstanding invoices for its Tucano gold processing facility in Brazil and boost working capital.
Beadell said today it would raise the funds though an underwritten placement to institutional investors, priced at 89 cents per share.
The raising comes after a delay in commissioning Beadell’s Tucano processing plant, which was completed in December, forced the company to restructure payments under its main debt facility.
The debt provider required Beadell to raise additional funds to restructure the payments.
Around $8 million of the funds raised will be used to pay down all outstanding capital expenditure invoices for the plant, while the remainder of the funds will bolster the company’s balance sheet.
At close of trade today, Beadell shares were down 2 per cent, trading at 94 cents.
