Exploration and development firm Gascoyne Resources has raised A$19m ($13.89m) through an oversubscribed placement to finance its Dalgaranga gold operation in Western Australia (WA).
The placement involved the issuance of 50 million shares at 30¢ each, with the Hong Kong-based fund manager LIM Advisors leading the oversubscription with A$10m.
Both existing and new investors participated in the placement.
The company is also planning to undertake a share purchase plan (SPP) to raise up to a further A$5m ($3.65m).
According to the firm, the proceeds will provide additional financial flexibility as Dalgaranga expands.
Commercial production from the project is expected to be achieved in late September / early October.
Gascoyne Resources managing director Mike Dunbar said: “We are also pleased to give our shareholders an opportunity to participate on the same terms as the placement through the upcoming SPP.
“While initial mining rates have been slower than anticipated, our processing facility is running extremely well and mining rates are now within 10% of scheduled maximum rates.
“We are targeting commercial production and a 100,000oz per annum run rate late in the current quarter or early next quarter and look forward to keeping our shareholders up to date throughout our ramp-up.”
Under the planned SPP, the existing eligible shareholders can subscribe for up to a maximum of A$15,000 worth of shares.
Gascoyne will use the funds raised from the SPP to fund exploration at both Dalgaranga and the Glenburgh gold project.
The exploration activities will include RC and diamond drilling of recent discoveries at Dalgaranga to allow conversion to ore reserves, as well as RC drilling on existing geochemical and structural targets at Glenburgh.