Paynes Find Gold has announced a $4 million capital raising plan to fund an exploration ramp-up at its tenements 420 kilometres northeast of Perth, following months of boardroom upheaval.
The company, which is now under control of a new board of directors, announced today it would proceed with a $4 million pro rata renounceable rights issue at 2 cents, with one free attaching 3 year listed option for every two new shares held.
Patersons Securities will act as lead manager and underwriter for the rights issue.
The company also announced that its directors had provided an additional $700,000 in funding, in addition to $900,000 in debt funding as part of a $2 million priority sub underwriting commitment from ASX-listed Delecta Limited.
Paynes Find, which has been under a cloud since incurring a loss of $5.2 million last financial year, also repaid just over $1 million in settlement payments to its previous creditors.
Over the last financial year it spent more on directors’ fees than exploration, with former managing director Peter Salter being paid $522,000, former executive director Adam Bennett paid $234,000 and Mr Berresford paid $105,000.
Its annual general meeting, held on 4 November, had to be adjourned after four directors – Peter Salter, Paul Matich, Andrew Caminschi and Brian Leedman – withdrew their nominations for election, leaving the company short of the minimum number of directors.
The Australian Securities and Investments Commission launched an investigation into the actions of the company, around the same time Peter Landau was appointed as executive chairman.
Shares in Paynes Find have been suspended from trading since October, after a $400,000 tranche of convertible notes were issued without disclosure to market.
The stock last traded at six cents, well down on its 20 cents float price.
