20/01/2020 - 15:14

Emerald seeks $75m for Okvau

20/01/2020 - 15:14

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Emerald Resources has announced plans to raise $75 million to fund its Cambodia-based Okvau gold project, via two placements of 1.9 billion new shares.

Emerald seeks $75m for Okvau

Emerald Resources has announced plans to raise $75 million to fund its Cambodia-based Okvau gold project, via two placements totalling 1.9 million new shares.

The raising will be led by Euroz with Canada-based Sprott acting as co-lead manager and undertaken in two tranches, with an unconditional placement for approximately $30.5 million in new shares followed by a second placement for $44.5 million, subject to shareholder approval.

Financing and the placement itself will cost $10.3 million, with new shares priced at $0.04 per share, a modest discount on $0.044 the company traded at as of January 20.

Those proceeds will add to $85.6 million of existing debt facility as well as $10.7 million in cash on hand, bringing total funding for the project to $171.3 million.

Emerald has set a deadline of March 19 to complete the placements, with the second tranche to go before shareholders at its general meeting on March 13.

The company, whose board includes former Regis Resources directors Morgan Hart and Mick Evans as managing director and executive director, respectively, has maintained full ownership of the project since 2016, when it acquired Renaissance Minerals.

The project itself will comprise a single pit, with the first gold production expected in the second quarter of 2021.

Besdies Mr Hart and Mr Evans, other members of the board include non-executive chair Simon Lee, as well as non-executive directors Ross Stanley and Ross Williams, company secretary Mark Clements and operations manager Bernie Cleary.

Mr Lee was previously chair of Equigold NL, Samantha Gold NL and Great Victoria Gold NL.

Mr Hart has served as managing director since 2014.

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