Former water-proofing company Hydrotech International has turned its attention to resources and overcome tough market conditions to raise more than $6 million to fund its first venture.
In a back-door listing arrangement Hydrotech last year acquired unlisted company Primary Minerals and its Mt Bundy gold project in the Northern Territory for $9.5 million.
The company has since successfully raised $6.3 million through the issue of 30 million shares priced at 20 cents each.
The company plans to re-list as Primary Gold by the end of the month and immediately start work on planning and approvals for the Mt Bundy mine in the Northern Territory.
It plans to have the underground mine back up and running by the end of the year.
Primary Minerals directors Clay Gordon, Dale Rogers and Tim Manners will join the Primary Gold board, with Mr Gordon taking up the managing director role.
The historic Mt Bundy project has produced about 300,000 ounces over different phases of production dating back to the early 1990s.
Perth-based Hydrotech made a name for itself in the development of intellectual property for waterproofing technology, which it later sold off to the former chief executive.
It had since been looking for potential investment options and fell upon the Primary Minerals opportunity after a failed memorandum of agreement to acquire a residential property management company.
Mr Gordon said the successful capital raising “paved the way” for progression of Mt Bundy.
“The first step being the restart of the Toms Gully underground mine which we aim to achieve this calendar year.
“I’m excited about the opportunity and look forward to a strategic update in the coming weeks.”
