28/09/2012 - 11:47

Doray to raise $43m for Andy Well

28/09/2012 - 11:47

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Doray to raise $43m for Andy Well
Exploration work at the Andy Well deposit, around 45km from Meekatharra.

Doray Minerals has launched a $30.8 million share placement in conjunction with a $12.2 million entitlements offer, ensuring its Andy Well gold development near Meekatharra is fully funded to production

Doray said today it had received firm commitments to place 41 million shares with institutional investors, while also announcing a one-for-five rights issue for existing shareholders.

Both the placement and the rights issue are priced at 75 cents per share.

The entitlement issue is being fully underwritten by Black Swan Equities and Bell Potter Securities, while Black Swan, Bell Potter and Casimir Capital are acting as joint lead manager to both offers.

Doray managing director Allan Kelly said following completion of both offers, the company will be fully funded up to first production at Andy Well midway thorugh next year.

“The company will also have sufficient working capital for corporate expenses, and most importantly, to continue its proposed exploration programs over the next 12 months,” Mr Kelly said in a statement.

“Since the discovery of the high-grade Wilber Lode gold deposit soon after listing in early 2010,we have been working towards bringing the project into production as quickly as possible.

“This capital raising is the final component in regards to bringing the Andy Well project to production.”

AT 11:30AM, WST, Doray stocks were down 8.2 per cent, trading at 84 cents.

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