Gold-producer Millennium Minerals (ASX:MOY) financial restructure continues to gain momentum, with the company completing a A$21 million capital raising - which is quite impressive in the current commodity markets.
The raising was conducted at $0.04 through a Share Participation Offer, and strong demand from investors meant that the sub-underwriters only had to take up $3.3 million of shares under its commitment.
The company is producing gold from its Nullagine Gold Project in the Pilbara region of Western Australia.
During the September quarter record production of 27,238 gold ounces was achieved, taking production for the past nine months to 68,959 gold ounces.
All-in Sustaining Cost (AISC) for the quarter was $1020 an ounce ($956 an ounce before payment of profit-share royalty).
Allocation of funds
Millennium has a set plan, with the new funds to retire Millennium’s sub-ordinated debt, and then the company will eliminate the remainder of its bank debt using internally generated cash-flow by March next year.
Therefore the company is positioned to be debt free by March 2016.
The new funds will also provide backing a major exploration program already underway at Nullagine, which will target an increase to the projects mine life.
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