09/02/2015 - 14:55

Phoenix Gold raises $5m

09/02/2015 - 14:55

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Kalgoorlie-based Phoenix Gold has raised $5 million from a placement and plans to raise an additional $1 million in a share purchase plan.

Phoenix Gold raises $5m
Phoenix managing director Jon Price.

Kalgoorlie-based Phoenix Gold has raised $5 million from a placement and plans to raise an additional $1 million in a share purchase plan.

The company said it had successfully completed a placement of 50 million shares at 10 cents per share, representing a 13 per cent discount to Phoenix’s last closing price of 11.5 cents last Tuesday.

It sent Phoenix shares down 13.9 per cent to 9.9 cents per share at the close of trade today.

Settlement of the placement is scheduled for Thursday.

Meanwhile, the company said existing shareholders would be offered the opportunity to participate in a $1 million share purchase plan.

“Funds from the placement and SPP will be used to complete the acquisition of the St Ives 2.3 million tonnes per annum heap leach processing facility,” the company said in a statement.

“Proceeds will also be used to commence relocation of the plant in line with Phoenix’s obligations, and to provide general working capital.”

Managing director Jonathan Price said the heap leach facility was a key part of the company’s development strategy to enable the treatment of stockpiled lower grade ore mined from Castle Hill and surrounding projects.

“Advancing this significant component of this strategy will provide us with an important additional source of cash flow over many years,” he said.

Patersons Securities acted as lead manager to the placement.

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