Junior gold miners raise $12m

Junior miners Draig Resources and Capricorn Metals will tap investors in separate capital raisings as both companies advance their respective Western Australian gold projects.

Capricorn will raise $7 million through the issue of around 137 million shares at 5.2 cents each, an 8.9 per cent discount on the 20-day volume-weighted average price, with strong support from new and existing institutional and sophisticated investors.

Proceeds from the placement will be used to progress the company’s Karlawinda gold project, which is located 65 kilometres south-east of Newman.

The company will continue ongoing exploration activity, including an updated reserve estimate, and complete pre-development activities.

Capricorn executive chairman Heath Hellewell thanked investors for their support.

“Capricorn is now well positioned to advance exploration and pre-development activities at the Karlawinda gold project in preparation for project development in the second quarter of 2018,” he said.

“The very strong demand is a strong vote of confidence in the quality of Karlawinda, the management team and the company’s value proposition.”

Cannaccord Genuity acted as lead manager to the placement.

Meanwhile Draig has announced a $5 million capital raising and will issue 25 million shares at 20 cents each with support from Australian institutional and sophisticated investors.

The funds raised will be used to fast track exploration at the Bellevue gold project, 400 km north-west of Kalgoorlie

Draig executive director Steve Parsons said the proceeds would allow the company to advance work on the western mineralised corridor of the project.

Patersons Securities and BW Equities acted as joint lead managers to the placement.