22/02/2018 - 11:27

Doray in $25m raising

22/02/2018 - 11:27

Bookmark

Upgrade your subscription to use this feature.

Gold miner Doray Minerals has raised $25 million to reduce debt and increase exploration at its Deflector project, which is located 160 kilometres east of Geraldton.

Doray in $25m raising
Leigh Junk says $14 million from the raising will be used to reduce debt.

Gold miner Doray Minerals has raised $25 million to reduce debt and increase exploration at its Deflector project, which is located 160 kilometres east of Geraldton.

The company said it had issued 89 million shares at 28 cents each to institutional and sophisticated investors.

The price represents a 6.7 per cent discount to the five-day volume-weighted average price.

Doray said it would use $14 million from the placement to reduce its debt.

As at December 31, the company had $47.5 million in debt, following the capital raising and a $4.5 million contribution from Doray’s cash balance the gold miner will reduce its debt to $29 million.

“We have worked tirelessly to turn the company around over the last fourteen months and are pleased with the response from the investment markets to the capital raising,” managing director Leigh Junk said.

“The funds raised will provide a strengthened balance sheet giving us the flexibility to expedite our growth plans.

“Doray will also continue to explore for additional discoveries proximal to the Deflector mine.”

The company will also use the funds to undertake resource definition drilling at its Da Vinci project.

Petra Capital acted as sole lead manager to the placement.

Shares in Doray were off 12.5 per cent at 28 cents each at 2pm AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options