Gold exploration company Cortona Resources has announced plans to raise $10.3 million to accelerate the development of its Dargues Reef gold project in New South Wales.
Gold exploration company Cortona Resources has announced plans to raise $10.3 million to accelerate the development of its Dargues Reef gold project in New South Wales.
The capital raising will comprise a $2.5 million placement and fully underwritten $7.8 million rights issue.
Cortona will issue 68.8 million shares at 15 cents each, with a one-for-two attaching 20 cent option expiring on January 31, 2012.
The proceeds of the raising will be used to underpin a Definitive Feasibility Study (DFS) on the Dargues Reef Main Lode, part of the wholly-owned Majors Creek Gold Project located 60 kilometres east of Canberra.
Full announcement below:
CORTONA ANNOUNCES $10.3M CAPITAL RAISING TO ADVANCE DARGUES REEF TOWARDS PRODUCTION
FUNDS RAISED TO UNDERPIN FEASIBILITY STUDY AND EXPANDED EXPLORATION
HIGHLIGHTS
§ $2.5M institutional share placement
§ Fully underwritten 1-for-2 rights issue to raise additional $7.8M
§ Definitive Feasibility Study to commence immediately on Dargues Reef Deposit (1.44Mt @ 6.2g/t Au for 286,000oz):
o Operations Manager and several key teams already in place
o Tenders being sought for mining and infrastructure studies
§ DFS targeted for completion by end of 2010, with first production scheduled for mid-2011
§ Near-mine and regional exploration to be ramped-up
Australian gold company Cortona Resources Limited (ASX: CRC) is pleased to announce a $10.3 million capital raising comprising a $2.5 million institutional share placement and fully underwritten $7.8 million rights issue to accelerate the development of its Dargues Reef Gold Project in New South Wales. This announcement releases the Company from voluntary suspension.
The proceeds of the raising will be used to underpin a Definitive Feasibility Study (DFS) on the Dargues Reef Main Lode, part of the 100%-owned Majors Creek Gold Project located 60km east of Canberra.
The DFS will build on the recently completed positive Scoping Study, which indicated that a potential underground mine development at Dargues Reef would be robust and viable, delivering production of 40-50,000 ounces per annum.
The funds will also be used to ramp-up exploration drilling at Dargues Reef and to target a series of priority exploration prospects within "the shadow of the headframe" at Majors Creek, where the Company has a 700km2 tenement position
Capital Raising
Cortona will raise $10.3 million before costs through the issue of 68,845,194 shares at $0.15, with a one-for-two attaching $0.20 Option for a total of 34,422,597 Options expiring 31 January 2012. Cortona will apply to have these options quoted on the ASX. The funds will be raised via a $2.5 million placement in two tranches to an International Fund Manager, with the remainder being raised via a fully underwritten, renounceable 1-for-2 Rights Issue to existing shareholders.
Patersons Securities are Lead Managers to the Placement and Underwriter of the Rights Issue. Full details of the Rights Issue are contained in the Prospectus dated 17th November 2009. The second tranche of the Placement will be subject to shareholder approval, which will be sought at a General Meeting of the Company on the 18th of December. Details of the meeting will be provided to Shareholders in a Notice of Meeting that will be mailed to shareholders later this week.
Cortona intends to use the funds to complete the DFS at Dargues Reef, ramp up its exploration activities at Majors Creek, and for working capital and Corporate Administration. As a consequence of this capital raising, Cortona will withdraw Resolution 4 at the Company's AGM, which seeks approval for a future Share placement.
