15/02/2008 - 09:27

Kiernan's Monarch, Territory raise capital

15/02/2008 - 09:27

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Michael Kiernan-chaired companies Monarch Gold Mining Company Ltd and Territory Resources Ltd have raised $10 million and $9.3 million, respectively, from share placements.

Kiernan's Monarch, Territory raise capital

Michael Kiernan-chaired companies Monarch Gold Mining Company Ltd and Territory Resources Ltd have raised $10 million and $9.3 million, respectively, from share placements.

Monarch raised $10 million to fund development at its Riverina and Mt Ida mines north-west of Kalgoorlie, with full production planned from these centres within the next quarter.

The West Perth-based company will place 20 million shares at 50 cents per share to institutional and sophisticated investors to raise the funds.

Mr Kiernan said the $10 million raised exceeded the company's target, with the number of shares placed being within the company's 15 per cent capacity under ASX Listing Rule 7.1.

"The funds will be put to immediate use as we bring forward commencement of mining at the robust Riverina prospect, and steadily increase production from Davyhurst as part of our redesigned mine plan," he said.

Mr Kiernan said Monarch was continuing its steady and solid increase in production at the Davyhurst project and as the company was unhedged it was able to capitalise on the current market strength in gold.

The company also has no bank debt.

Monarch recently agreed to acquire the Mt Magnet Gold Project which included the historic Hill 50 gold mine.

"The highly prospective Mt Magnet Gold Project is a major strategic acquisition for Monarch and its shareholders, adding established gold resources, a quality gold processing plant and one of the largest tenement packages in the region," he said.

When Davyhurst is in full production (125,000 oz pa) together with Hill 50 (150,000 oz pa - 2nd half 2009) the company will have a combined production of 275,000 oz pa with a healthy profit margin.

Meanwhile, Territory Resources Ltd successfully raised $9.3 million before costs, through a placement of 9.3 million shares at an issue price of $1.00 per share to institutional and sophisticated clients of Euroz Securities Limited.

Funds from the placement will be used in relation to the Windimurra Vanadium Limited Entitlements Issue and the placement also falls within the company's 15 per cent capacity.

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