Gold miner Doray Minerals plans to accelerate drill testing of near-mine exploration targets at its Andy Well gold project in the Murchison region following a $17 million capital raising.
Gold miner Doray Minerals plans to accelerate drill testing of near-mine exploration targets at its fully owned Andy Well gold project in the Murchison region following a $17 million capital raising.
Doray Minerals today announced it expected to raise $17 million through the placement of approximately 21 million fully paid ordinary shares at a discounted price of 80 cents per share.
The company said the funds received from the raising would be allocated to the exploration operations at its Andy Well gold project as well as to its regional exploration, project generation and business development activities.
Andy Well is Doray’s first 100 per cent owned gold mining project, officially starting operation in November 2012 with an annual gold production estimation of 74,000 ounces and a total gold production estimation of 256,000oz over a three-and-a-half-year mine life.
The company had a total gold production of 24,162oz at a head grade of 13.09 grams per tonne from the project, and sold 25,719oz of gold with the average price of $1,472/oz during the past quarter.
The size of the project has been expanding since the commencement and the capital raising came after the company reported last month its drill testing had found a high grade gold intersection that extended its Suzie zone at the project, and stated the results showed project upside at Andy Well and potential to increase the mine life.
Doray managing director Allan Kelly said he expected the capital raising would inject further momentum into the exploration of its project, while assisting with the company’s balance sheet management.
“This capital raising will give us the ability to rapidly advance a number of these targets with the aim of adding to the project mine life in the near term, whilst maintaining the aggressive debt repayment schedule which should see the company pay off the $55 million project finance facility by September 30 2014,” he said.
GMP Securities is acting as lead manager to the placement.