09/11/2017 - 13:02

Eastern to raise $30m for Davyhurst and Mt Ida

09/11/2017 - 13:02


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Mr Fotios said the $30 million placement would allow the gold miner to progress a number of projects

Eastern Goldfields has announced a conditional deal with an international asset manager to raise up to $30 million, with the proceeds used to maintain operations at the company’s Davyhurst gold operation and undertake feasibility studies on its Mt Ida project.

The Perth-based gold miner will raise $17.5 million from Hawke’s Point Holdings, which is an affiliate of alternative asset management group Tetragon, while the remaining $12.5 million will come through subscribers sourced by Eastern.

The placement has been priced at 20 cents per share, compared with its last trading price of 23.5 cents in mid August.

All shares issued from the placement include a one-for-one free attaching unlisted option.

The company attempted to raise $28 million in April to maintain the Davyhurst project but only managed $22.5 million at 35 cents per share, including a $4 million debt conversion with executive chairman Michael Fotios.

Eastern currently has $37,000 in the bank according to the latest quarterly report.

Mr Fotios said the placement would allow the gold miner to progress a number of projects.    

“I am very pleased to welcome international mining investor Hawke’s Point as a significant shareholder,” he said

“I am also pleased to receive considerable ongoing support from our existing shareholder base.

“The funds raised will be used to support Eastern Goldfields’ ongoing operations at Davyhurst and further progress exploration activities.

“This new investment is a strong endorsement of the quality of the assets and our overall strategy.”

Eastern's shares have been suspended since it was ordered to be wound up by the Supreme Court of Western Australia in August after an application by Maddington-based Genalysis.

The decision was reversed days later after it was revealed the relevant debt of $383,000 was paid the same day the application was lodged, however, the shares remain suspended. 


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