15/09/2010 - 14:59

Cleveland closes $6m capital raising

15/09/2010 - 14:59

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Gold company Cleveland Mining Company, formerly Western Kingfish, has closed an over-subscribed, $6 million capital raising.

Cleveland closes $6m capital raising

Gold company Cleveland Mining Company, formerly Western Kingfish, has closed an over-subscribed, $6 million capital raising.

The Perth-based company issued 30 million fully paid ordinary shares at 20 cents per share, subject to the completion of the acquisition of Cleveland Mining Limited.

Cleveland expects to trade on the Australian Securities Exchange at the end of September.

In a statement to the ASX, Cleveland said it will direct a substantial percentage of the money towards drilling the Company's tenements in the Crixás goldfields of central Brazil.

CEO David Mendelawitz said that the success and speed of the raising bore testament to the strength of the projects and the people behind them.

"Despite the recent market rally, the equity raising environment remains incredibly tight, with even good projects falling short for funds," said Mr Mendelawitz.

"Cleveland has defied the trend because promising new gold projects such as ours are rare, as vindicated by the recent consolidation of gold companies," he said.

 

See company statement below:

Australian gold company Cleveland Mining Company Limited (ASX: WKF) (formerly Western Kingfish Limited) has closed an over-subscribed, six million dollar capital raise on the issue of 30 million fully paid ordinary shares at $0.20 per share, subject to the
completion of the acquisition of Cleveland Mining Limited.

The Company expects to trade on the ASX before the end of September, after the acquisition of Cleveland Mining Limited is completed, subject to ASX approvals and processes.

Cleveland will direct a substantial percentage of the money towards drilling the Company's tenements in the Crixás goldfields of central Brazil. A further three drill rigs are expected to join the existing rigs, which continue a program of round-the-clock operations.

CEO David Mendelawitz said that the success and speed of the raise bore testament to the strength of the projects and the people behind them.

"Despite the recent market rally, the equity raising environment remains incredibly tight, with even good projects are falling short for funds. Cleveland has defied the trend because promising new gold projects such as ours are rare, as vindicated by in the recent consolidation of gold companies," said Mr Mendelawitz.

Patersons Securities Limited was the Lead Manager to the capital raising.

 

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