Gold miners tap market for extra funds

Gold miners Norseman Gold and Apex Minerals have announced fundraising plans collectively worth around $23 million as the companies seek to ramp up production at their Western Australian operations.

Norseman announced a $20 million capital raising plan today, to repay its debts and advance exploration programs at its namesake gold operation in the eastern goldfields.

The company announced that its major shaerholder, Tulla Gold, had agreed to underwrite the entire placement, priced at 4 cents per share, for $12 million cash and $8 million in converted debt.

Moelis Australia Advisory and Ocean Equities will act as joint bookrunners and joint lead managers.

The company said the fundraising would help it achieve its objective of 17,000 ounces of gold  produced in the first quarter of 2013.

Meanwhile, Apex Minerals has announced a $2.74 million share placement, priced at 11 cents per share.

The proceeds from the placement will be used to provide additional working capital as it seeks to increase production for the September quarter to between 15,000 and 17,000 ounces of gold.

Apex said existing institutional investors gave the placement strong support.

Norseman Gold stocks last traded at 5.2 cents before entering a trading halt earlier today, while Apex shares were down 4.3 per cent, at 11 cents.