27/09/2016 - 12:14

Crusader in $10m raising for gold projects

27/09/2016 - 12:14

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Perth-based Crusader Resources has announced a $10 million capital raising to fund ongoing work at its Juruena gold project in Brazil.

Crusader in $10m raising for gold projects
Crusader is exploring for gold at its Juruena project in Brazil.

Perth-based Crusader Resources has announced a $10 million capital raising to fund ongoing work at its Juruena gold project in Brazil.

Crusader raised $8.5 million through the placement of 65.3 million shares at 13 cents each to institutional and sophisticated investors, and plans to raise a further $1.5 million by way of a share purchase plan.

The price of the raising represented an 18 per cent discount to the company’s five-day volume-weighted average price.

Crusader chairman Stephen Copulos has committed to subscribe for $750,000 worth of placement component of the raising.

The proceeds of the raising will be used to advance development of the company’s Juruena project, complete a bankable feasibility study on its Borborema gold project (also in Brazil), pay off a debt facility with Macquarie Bank, and general working capital.

Crusader executive director Paul Stephen said the company was grateful for the strong investor support as it accelerated its plans.

“This is a pivotal moment for Crusader as we move towards developing our second mine in Brazil,” he said.

“We now have two advancing gold projects that have different characteristics, but are both excellent standalone projects.”

Patersons Securities managed the raising, while Tamesis Partners acted as co-manager.

Crusader shares were 12.1 per cent lower to 14.5 cents each at midday.

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