20/08/2013 - 15:12

Juniors launch plans to raise $12m

20/08/2013 - 15:12

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Junior resources plays Millennium Minerals and Citation Resources have announced capital raisings worth a collective $12 million.

Juniors launch plans to raise $12m
Blast hole preparations at Millennium's Golden Eagle pit, at the company's Nullagine gold project.

Junior resources plays Millennium Minerals and Citation Resources have announced capital raisings worth a collective $12 million.

Gold miner Millennium said it would launch a 2 for 21 rights issue, priced at 32 cents per share, to raise just over $6 million.

The issue is fully underwritten by IMC Resources Gold Holdings, and will be put towards paying down debts, business development opportunities and general working capital.

Millennium managing director Brian Rear said the capital raising would form the foundation for the company’s next chapter of growth.

“We are extremely proud of the significant growth and strategic milestones we have achieved over the last nine months against a backdrop of some of the most challenging market conditions faced by gold companies in many years,” Mr Rear said in a statement.

“Our prudent approach to risk management has seen the company not only successfully commission the Nullagine gold project on time and within budget but also emerge as one of the few companies in the sector with a gold hedging program in place.”

Meanwhile, oil and gas explorer Citation Resources announced today it had completed a $6 million capital raising, to fund work programs at the Atzam oil project in Guatemala and boost general working capital.

The raising comprised the placement of 300 million shares priced at 2 cents each.

Citation said the funds would go towards drilling and completion of the Atzam #5 development well and increasing onsite oil storage facilities.

At close of trade today, Millenium’s stock were down 9.6 per cent, at 37.5 cents, while Citation shares were steady at 1.8 cents.

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