Gold hopeful Millennium Minerals has announced a $16.6 million capital raising and has restructured its debt facilities to boost its coffers as it ramps up its Nullagine gold project in the Pilbara to production by the end of the year.
Millennium said it had received firm commitments from institutional investors and high-net worth individuals for the placement, which will be undertaken in two tranches.
Patersons Securities acted as lead manager for the placement, which was priced at 1.9 cents per share.
The company also said today it had restructured its debt facilities with BNP Paribas and National Australia Bank, increasing its senior construction facility from $15 million to $40 million, while an existing $5 million capital cost overrun facility was unchanged.
Millennium decreased its asset lease facility to $8 million, from $10 million.
Chief executive Brian Rear said the capital raising would fund further studies to identify an optimal mining production rate suggested by an increased ore reserve estimate.
Mr Rear said construction of the processing plant at Nullagine was on schedule and within its $87.6 million budget.
The project has a 1.33 million ounce JORC compliant gold resource contained within seven deposits.
The company is targeting a commissioning date for the processing plant sometime during the third quarter of calendar 2012, with production expected to begin in the fourth quarter.
“This capital raising, together with our increased debt facilities, will also provide for increased capital construction reserves and for working capital during a conservative operational ramp up schedule,’ Mr Rear said in a statement.
“Following a 31 per cent increase in reserves late last year we have been evaluating a significant upsizing of our Nullagine gold project to best achieve our 100,000 ounce annual production base target whilst maintaining an 8 year mine life or better. “
At 10:47AM, WST, Millennium stocks had plunged by 13 per cent, trading at 1.9 cents.