23/01/2009 - 09:21

Resolute raises extra $6m, output down

23/01/2009 - 09:21

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Gold miner Resolute Mining has raised a further $6 million through the placement of shares not taken up in the previous rights issue, as total gold production fell 10 per cent in the December quarter.

Gold miner Resolute Mining has raised a further $6 million through the placement of shares not taken up in the previous rights issue, as total gold production fell 10 per cent in the December quarter.

Resolute said the take up of $6 million worth of shares brings its total capital raising efforts to $60.7 million.

Last year, the company had planned to raise $72.5 million but fell short of its target and raised $54.7 million.

The extra raising saw the issue of 15 million shares priced at 40 cents each with a one-for-three attaching option.

The shares were placed with clients of Paterson Securities. Funds raised from the issue will go towards the development of its flagship Syama mine in Mali.

Shares in Resolute were unchanged at 40c at 11:34 AEDT.

Meantime, the company released its December quarterly report today, with gold production from its three mines totaling 73,140 ounces, down from the previous quarter's 81,570oz.

Resolute operates two gold mines in Africa and one in Australia.

Total cash costs over the quarter were up from $A773 per ounce to $A819/oz.

The company had cash and bullion of $A41.8 million at the end of the quarter.

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