15/01/2010 - 14:55

Carrick Gold raises $18m

15/01/2010 - 14:55

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Perth-based Carrick Gold has raised $18 million through an oversubscribed placement to advance its Kalgoorlie gold projects toward production.

Carrick Gold raises $18m

Perth-based Carrick Gold has raised $18 million through an oversubscribed placement to advance its Kalgoorlie gold projects toward production.

The funds were raised through a share placement to institutional and sophisticated investors in Australia, Asia and the UK. The placement included 18 million shares at $1.00 per share. The placement was managed by BGF Equities Pty Ltd.

The funds will be primarily used to advance Carrick's Lindsay's, Kurnalpi, and Kalpini gold projects - located north of Kalgoorlie - through the completion of feasibility studies. They will also be used to continue Carrick's successful exploration and resource expansion program.

Carrick has developed a gold resource of more than 4.1 million ounces, located within 90km of Kalgoorlie.

In September last year, the company commenced a pre-feasibility study, conducted by Golder Associates, for an open-pit mining operation at its Lindsay's, Brilliant, and Kalpini gold projects.

Carrick Chairman Frank Carr said the successful fund raising was a further step toward Carrick's aim to become an Australian mid-tier gold producer of around 100,000+ ounces per annum.

"We are very pleased with the strong response to the share placement, as a validation of the quality of our assets and our development strategy. We now have well positioned with a strengthened balance sheet to continue to grow and advance our gold projects," Mr Carr said.

"The Pre-Feasibility Study into the Lindsay's, Brilliant, and Kalpini gold projects is now well advanced and we expect it to be completed soon. The additional funding will allow use to move forward to the next stage of development, with our goal to progress to production as soon as possible."

"At the same time, the Company is also continuing its active exploration programmes across its projects, including the recently acquired Kalgoorlie West tenements. To date we have been highly successful in establishing and expanding our significant resource position at a very low discovery cost. The mineralisation at a number of these projects remains open along strike and at depth, and we have funded drill programmes in place to further build our gold inventory, and add additional mineable resources," Mr Carr said.

 

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