08/01/2010 - 09:05

Cortona up 10% after capital raising

08/01/2010 - 09:05

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Shares in gold explorer Cortona Resources have jumped almost 10 per cent in morning trade following the company's completion of a $10.3 million capital raising which was concluded with the settlement of a $3.6 million shortfall.

Shares in gold explorer Cortona Resources have jumped almost 10 per cent in morning trade following the company's completion of a $10.3 million capital raising which was concluded with the settlement of a $3.6 million shortfall.

The Leederville-based company announced settlement of the shortfall from the renounceable rights issue to sub-underwriters and clients of Patersons Securities, underwriter to the Rights Issue, this morning.

The $10.3 million capital raising, which included the rights issue and a placement to an international fund manager, will be used to progress drilling campaigns at Dargues Reef in New South Wales and North Monger in Western Australia.

The shortfall shares and options will be issued and allotted on January 11.

Cortona managing director, Peter van der Borgh the company will move towards gold production at Dargues Reef over the coming year.

"The Dargues Reef DFS and Planning Approvals process are underway, and aggressive drilling campaigns at Dargues Reef in NSW and North Monger in WA are about to commence," he said in a statement.

Shares in the company were up 1.5 cents, or 9.3 per cent, to 17.5 cents per share at AEST1130.

 

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