Focus Minerals plans $28m raisings

Perth-based Focus Minerals plans to raise up to $28 million in two separate raisings, with the majority of funds to go towards the refurbishment of a treatment facility at its Coolgardie gold project.

The company plans to raise $25 million through a share placement, with 1.25 billion new shares to be issued at two cents each.

Shares in the company last traded at 2.3c, down 0.4c at 13:03 AEDT.

Focus says the placement will take place in two tranches, with shareholders to approve the second tranche of $23 million.

Additionally, the company plans to raise up to a further $3 million through a share purchase plan, with up to 150 million shares to be issued at two cents apiece.

Azure Capital will act as lead manager to the capital raising while Patersons Securities will act as broker.

Focus said $18 million of funds raised will go towards the Three Mile Hill plant refurbishment at Coolgardie while $4.6 million will be used to boost resources at the Perseverance and Countess deposits.

Meantime, Peter Williams has relinquished his role as managing director to take on the position of chief operating officer to oversee the plant refurbishment.

Campbell Baird, who currently holds chief operating officer role, will assume the position of chief executive.

"Our priority now is to ensure that the Three Mile Hill plant is completed on time and within budget and, to this end, the decision by Peter Williams to relocate full-time to Coolgardie was unanimously supported by the Board," chairman Don Taig said.