Cleveland placement secures $3m

Cleveland Mining Company has raised $3 million to accelerate development at its Premier gold mine in Brazil.

The Perth-based miner announced today it had completed a share placement priced at 12 cents per share, which was well-supported by institutional and sophisticated investors.

Newly installed chairman Russell Scrimshaw will invest $100,000 in the placement.

The funds will go towards a new primary crushing circuit at the Premier mine, upgrading the process water supply and to begin pre-stripping of waste over the higher-grade Metago pit at the project.

Around $400,000 of the proceeds will be used to repay a loan facility established late last year.

“This capital raising allows Cleveland to continue to ramp up production at the Premier gold mine and increase the efficiency and profitability of the operation over time,” managing director David Mendalawitz said.

At 12:50PM, WST, Cleveland Mining shares were steady at 15.5 cents.