Centamin Egypt is a mineral exploration company, listed on the Australian Stock Exchange (ASX:CNT), the AIM Market of the London Stock Exchange (AIM:CEY) and the Toronto Stock Exchange (TSX:CEE).
Centamin has been exploring for gold in Egypt since 1995, and in 2005 was granted a 160km 2 exploitation lease over the massive Sukari Hill gold project. The current resource at Sukari is 9.01 million ounces Measured and Indicated, and 3.3 million ounces Inferred, with ongoing drilling expected to add significantly to this resource.
A feasibility study to upgrade the project to a 4-5 million tonne per year operation was completed in February 2007. Construction is underway and production is expected in the second quarter of 2009.
Centamin Egypt (ASX:CNT/TSX:CEE/AIM:CEY) has announced that it has entered into an agreement with a syndicate of underwriters led by Thomas Weisel Partners Canada Inc. and Cormark Securities Inc. under which the Underwriters have agreed to buy 92,308,000 ordinary shares from Centamin Egypt Limited on a bought-deal basis and sell them to the public at a price of C$0.65 per Ordinary Share.
Gross proceeds raised from the offering to Centamin will be C$60,000,200 (C$69,000,230 if the over-allotment option is exercised). The offering is subject to the approval of the TSX.
Centamin Egypt Limited intends to use the net proceeds of the offering for the continued development of the Sukari Gold Project, underground development, other exploration and general corporate and working capital purposes. The requirement for additional development funds is primarily a result of recent movements in the US dollar to Canadian dollar exchange rate and construction delays at the Sukari Gold Project (as previously reported). The Company remains debt free, without gold hedging and on track for gold production in Q2 2009.
Centamin Egypt was trading up 3%, to 88 Australian cents.