Calidus raises $13m to acquire gold project

Calidus Resources has secured commitments to fund the acquisition and exploration of a gold project in Warrawoona, located in the Pilbara.

That project is thought to contain about 220,000oz of gold; if it is brought online, the company’s production is expected to increase to 130,000oz per annum.

The company informed the market today that it had secured commitments through the placement of 31 million shares costed at $0.40 each.

Alkana Resources, Calidus’ largest shareholder, will pay $1.3 million to maintain its shareholding, while managing director David Reeves has applied for $250,000 worth of shares.

Euroz Hartleys and Blue Ocean Equities acted as joint lead managers to the raise.

“While our focus remains the successful commissioning of the Stage 1 Warrawoona Project, which is on track to pour first gold in the new year, we will also progress Blue Spec to feasibility level,” Mr Reeves said.

“This will enable us to implement the increase in production with minimal delay once we are satisfied with the performance at Warrawoona.

“I would like to thank all existing shareholders who supported this transaction and welcome new shareholders for what will be a pivotal 12 months in our company’s life.”

Shares in Calidus were trading at $0.42 at 2:30pm AEDT.