Gascoyne raises $55m for gold project

Perth-based explorer Gascoyne Resources has confirmed a $55 million capital raising to fund development of its Dalgaranga gold project in the Murchison region.

Gascoyne told the market this morning it would raise $50 million from investors through the placement of shares at a price of 50 cents each, and would raise a further $5 million by way of a share purchase plan at the same price.

The proceeds of the raising will be put towards the company’s Dalgaranga project, which has a development capex estimate of $86 million, according to a feasibility study completed in November.

“The overwhelming demand for this placement from supportive shareholders and a large number of new well-respected domestic and international institutional investors provides a strong endorsement of the quality of our high margin Dalgaranga gold project in the Murchison region of WA,” Gascoyne managing director Michael Dunbar said.

“The company is now in the strongest position it has ever been and we look forward to rapidly advancing the development of Dalgaranga for the benefit of our shareholders”.

Hartleys acted as lead manager to the placement, with Argonaut Securities acting as co-manager.

Gascoyne shares were 6.8 per cent lower to 54.5 cents each at 9:30am.