The placement and SPP are at an issue price of $1 per share, representing a discount of 10.7% to the last closing price.
The equity raising will see the company fully funded for an aggressive exploration campaign at its Bellevue Gold Project in WA to upgrade and increase resources while advancing underground development on the pathway to resource growth and development.
Bellevue managing director Steve Parsons said: “This proceeds from the raising will help ensure we can unlock the full value of what is clearly an exceptional asset with extremely high grades and immense scope for further inventory growth.
“By implementing our dual exploration and development strategy, we will seek to maximise our ability to create value for shareholders through both resource growth and project development.
“The Bellevue Gold Project represents a unique, high quality asset and investment opportunity, its high grade (10.0 g/t), location in a tier-1 jurisdiction with access to existing infrastructure and the continued upside potential at the project which we aim to demonstrate by simultaneously increasing our Indicated Resource and growing the Global Resource at the Project.”
Rapidly growing resource
Proceeds from the placement and SPP will be used to accelerate the development of the project to fund:
- Growth of the existing 2.3 million ounces resource at Bellevue Gold Project;
- Further expand the indicated resource of 860,000 ounces at 11.6 g/t and grow the high-grade core of 480,000 ounces at 15.5g/t by upgrading more of the inferred resource;
- Ongoing step out exploration for further discoveries as all lodes remain open in every direction;
- Further regional exploration;
- Re-establish access for mechanised re-entry to underground and establish drill platforms;
- Fund underground mine development, including production decline and infrastructure;
- Establish non-processing infrastructure; and
- General working capital and offer costs.
Equity raising - indicative timetable