21/04/2010 - 11:44

Noble higher on $62m raising plan

21/04/2010 - 11:44

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Shares in Noble Mineral Resources were higher after the South Perth-based company confirmed a $62 million capital raising to progress its gold project in Ghana.

Noble higher on $62m raising plan

Shares in Noble Mineral Resources were higher after the South Perth-based company confirmed a $62 million capital raising to progress its gold project in Ghana.

Shares in Noble today came out of a trading halt, climbing 11 cents, or 22.7 per cent, to a high of 59.5c before settling at 50c at 13:14 AEST.

The capital raising will take place in two parts with a $60 million share placement to institutions and sophisticated investors, and a $2 million share purchase plan for eligible existing shareholders.

Shares in the both the placement and the SPP are priced at a heavily discounted 30c.

Patersons Securities is the lead manager to the placement.

Both the placement and SPP are subject to shareholders approval, with a meeting scheduled late next month.

At that meeting, shareholders will also be asked to approve the issue of 4 million shares and 6 million options to Investec Bank as part of the consideration payment for the Bibiana gold mine in Ghana.

Shareholders will also need to approve the issue of up to 5 million shares to various creditors of Bibiana to satisfy up to $1.5 million of debt.

Funds from the $62 million rising will be used to refurbish the plant at Bibiana at an estimated cost of up to $10 million, the cut back of an existing open pit ($40 million) and working capital including creditor repayment ($12 million).

Mining at Bibiana first started in 1902 and was been through various owners including Ashanti Goldfield and Central African Gold.

The operation ran into difficulties in late 2008 due to an inappropriate mine plan, low metallurgical recovery rates and poor financial controls, Noble said.

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