20/03/2013 - 15:30

Papillon raises $53m for Fekola

20/03/2013 - 15:30

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Papillon raises $53m for Fekola

West Africa-focused Papillon Resources has successfully raised $52.9 million through an institutional placement, with proceeds to fast track the development of its Fekola gold project.

The Perth-based explorer today said it would issue 39.5 million shares, subscribed to at $1.34 each, to institutional and sophisticated investors in Australia, Asia, Europe and North America.

Shares in Papillon closed down 3.5c to $1.36 today.

RBC Capital Markets acted as lead manager, while Euroz Securities and Argonaut acted as co-managers to the placement.

Papillon said funds from the raising will be used to fast track the various planned development and exploration initiatives, including completing pre-feasibility and feasibility studies, of its flagship Fekola gold project in Mali.

“The objective is to compress the anticipated development schedule for the project, highlighting our commitment to the rapid de-risking of Fekola, as we seek to achieve our corporate objective of becoming a gold producer in the near term,” managing director Mark Connelly said. 

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