Ramelius Resources has raised $25 million from investors to fund a development program in the Murchison region that is targeting a 40,000 ounce increase in gold production by FY18.
Ramelius Resources has raised $25 million from investors to fund further exploration work in the Murchison region, with the gold miner targeting a production increase of 40,000 ounces by FY18.
Ramelius raised the funds through the placement of 50 million shares at 50 cents each, representing a 5.5 per cent discount to the company’s 20-day volume weighted average price.
The funds will be used for ongoing work at the company’s Water Tank Hill and Milky Way developments, which form part of Ramelius’s exploration portfolio at its Mt Magnet gold mine in the Murchison region.
The miner is anticipating that development of Water Tank and Milky Way would increase its annual production to 150,000oz by FY18, while at the same time reducing all-in sustaining costs.
Ramelius produced 110,000oz of gold in FY16, at an AISC of $1,157/oz.
“We are very pleased with the support received for our new four-year mine plan and the possibilities of increased production going forward,” managing director Mark Zeptner said.
“This has transferred directly into demand for the placement, which was heavily oversubscribed, and Ramelius welcomes the addition of some of the world’s most respected general and precious metals funds as shareholders of the company.
“Supporting our long-term growth aspirations, the funds provide us with additional capital flexibility to fast-track multiple project developments at Mt Magnet without compromising our ability to move on current and future opportunities we have identified.”
Ramelius shares were 5.6 per cent lower to 54.7 cents each at 10:50am.