Perth-based gold and nickel miner View Resources Ltd has announced plans to raise $20 million to complete the restart of its Bronzewing gold project, acquired from Newmont Mining Corporation in 2004.
Perth-based gold and nickel miner View Resources Ltd has announced plans to raise $20 million to complete the restart of its Bronzewing gold project, acquired from Newmont Mining Corporation in 2004.
The capital raising comprises a placement of $18 million to British and Australian investors, and a fully underwritten $2 million share purchase plan to be issued to existing shareholders. Shares for both will be priced at 18c each.
The company needs to raise $36.5 million to fund the project, having already secured a debt facility through Investec Bank for $16.5 million.
The full text of a company announcement is pasted below
View Resources Ltd today announced a $20 million capital raising to complete the $36.5 million funding for the company's flagship Bronzewing gold project has been secured and the project is on track to commence operations from Q2 2007. The Company has already secured a debt facility through Investec Bank for $16.5 million.
The capital raising comprises of a placement of $18 million at 18 cents per share to a range of institutional and sophisticated investors in Australia and the UK, none of whom are related parties. Existing shareholders will also be offered the opportunity to participate in the new equity via a Share Purchase Plan of up to $5,000 worth of shares per shareholder priced at 18 cents per share. This SPP will be fully underwritten. The record date for participation in the SPP is Wed 15th, Nov 2006. Details outlining the SPP will be forwarded to eligible shareholders very shortly.
"Today's announcement is the culmination of many months of hard work and we are delighted that Bronzewing will once again be in production," View Resources Managing Director Tim Gooch said today. "In addition to strong institutional response in both Australia and the United Kingdom we have taken heed of the requests of many of our existing shareholders to participate in this funding exercise".
View purchased the Bronzewing project from Newmont in 2004 for $9 million, as part of the company's strategy to acquire and transform high quality mineral resource projects into cash producing operations. Early feasibility studies confirmed the project's potential and current models forecast production rates of 120,000 ounces per year on average over an initial four year mine life.
View is also committed to adding shareholder value through exploration of its prospective tenements and has committed to spend A$4M on exploration over the next 12 months to extend Bronzewing's mine life. View has already identified a number of exciting targets and plans to start drilling early in 2007. The Company is also pursuing growth opportunities through other regional exploration activities, joint ventures and strategic acquisitions.
Mr Gooch said that confirmation of funding for the project was a major milestone in recommissioning the mine and will allow the company to realise the full potential of the asset. "View has a distinct advantage over many other potential mining operations in Western Australia as the 2.3 mtpa plant and all associated infrastructure are in first class condition which can quickly and relatively inexpensively be brought into production".
The Company already has an experienced management group which is now focused on bringing together an operations team charged with over-seeing Bronzewing's production. This will include employing between 150-200 new personnel at the project over the next six months. Already the Company has received a number of enquiries from past employee's wishing to return to Bronzewing.
"This is a very exciting time for View and recommissioning Bronzewing is a major step towards the company achieving its objective of becoming a leading mid-tier Australian mining house". Mr Gooch concluded.
