27/08/2013 - 15:25

Silver Lake announces $64m capital raising plan

27/08/2013 - 15:25

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Silver Lake announces $64m capital raising plan
Silver Lake's Murchison gold processing facility.

Silver Lake Resources has detailed plans to raise up to $63.7 million, to repay its debts and provide working capital for its ongoing operations.

The company today announced it had received strong support for an underwritten placement to raise $47.5 million, priced at 85 cents per share.

The placement has been fully underwritten by RBC Capital Markets.

Silver Lake said it would seek to raise up to an additional $15 million, through a share purchase plan for existing investors.

The company’s directors also intend to take up a further $1.2 million worth of shares, through a private placement.

The share purchase plan and the directors’ placement will both also be priced at 85 cents per share.

“Net proceeds raised from the placement, the SPP and the placement to our directors will be used to repay our outstanding debt facilities and provide working capital for our operations,” managing director Les Davis said in a statement.

“The strong support we have had from existing and new investors coupled with the participation by Silver Lake directors in this capital raising highlights the positive sentiment towards the future prospects of the company.”

At close of trade today, Silver Lake shares were down nearly 6 per cent, at 95 cents. 

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