Westgold raises $45m to increase output

Westgold Resources has secured $45 million of new capital to accelerate production at its central Murchison gold project mines.

Westgold said it had placed 20 million shares at $2.25 per share, equivalent to about 5 per cent of its listed capital.

The company has advised that two undisclosed, major Australian institutions are behind the lion’s share of the raising.

Westgold said the new funds would go towards bolstering working capital for equipment and possible expansion plans, with the goal of lifting production during the next three years.

A Westgold spokesperson said some of the funds might end up being directed to the potential reopening of the Great Fingall underground mine, near the town of Cue.

Sydney-based Evolution Capital Advisors, headed by Stephen Silver, has been appointed as sole lead manager and bookrunner to the placement, with Canaccord Genuity as co-manager.

Completion of the raising is expected to occur on or around Friday May 22.