25/02/2019 - 12:31

Millennium to raise $15m

25/02/2019 - 12:31

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Millennium Minerals has announced a $15 million rights issue, with the proceeds set to go towards the development of its Nullagine gold project.

Millennium to raise $15m
The funds will go towards its Nullagine gold project.

Millennium Minerals has announced a $15 million rights issue, with the proceeds set to go towards the development of its Nullagine gold project.

Millennium will undertake a fully-underwritten one-for-8.8 renounceable rights issue of approximately 90.6 million shares at an issue price of 16.5 cents per share, which represents a 17.5 per cent discount to the company’s closing share price on February 20.

The rights issue will be underwritten by Bell Potter, with sub-underwriting from Millennium’s largest shareholder, IMC Group.

In a statement, the company said the $15 million would fast-track key growth programs at Nullagine, located in the eastern area of the Pilbara.

The development of a new high-grade underground mine at the Golden Gate mining centre would be allocated $10 million, while $4 million would be used to accelerate exploration at the project.

The final $1 million would cover general working capital and the costs of the capital raising, the company said.

Millennium chief executive Peter Cash said Millennium was on the cusp of an important transition at Nullagine.

“We have the opportunity to mine and process much higher-grade ore sources with the potential to further significantly increase our average head grade and reduce operating costs – all against the backdrop of a very favourable Australian Dollar gold price environment,” he said.

“Many high-grade sulphide targets at Nullagine have been ignored in the past due to the lack of a processing solution, with numerous high-quality targets set to be tested over the remainder of the year.

“Our aim is to increase our reserve base from the current 375,300 ounces to more than 500,000oz by the end of the year to deliver our targeted over-five-year mine life.”

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