Fresh after completing a $32 million share placement, Focus Minerals has started development of three open pits at its Tindals Mining Centre in Coolgardie.
Focus announced the completion of the placement yesterday at an issue price of 7.6 cents per share, part of a $40 million equity raising to provide the funding to increase production by 30 per cent.
A share purchase plan to raise the balance of $7 million also closed last week.
At Tindals, Focus has appointed Kalgoorlie-based mining contractor Barcon to develop the three new pits, and clearing has begun.
The company said the pits would put it on track to increase annualised production by 30,000 ounces.
Focus has existing underground operations at Tindals, and has recently opened a new mine, The Mount, 80 kilometres to the south.
The new pits will be within 5 kilometres of its Three Mile Hill mill in Coolgardie.
"This is another significant step forward in Focus' plan to ramp-up production to 100,000 ounces in 2011 and then to 130,000 ounces in 2012," Focus chief executive Campbell Baird said.
"We started 2011 with just one operating mine and in the space of four weeks we have commenced ore development from the company's second mine at The Mount, and now development of the third production centre at the open pits is underway."
Mr Baird said the three pits are among 13 deposits and prospects that Focus is developing across the 5km-long and 2km-wide Tindals Mining Centre.
In early trade this morning, Focus shares inched down 1.1 per cent to trade at 8.4 cents.
