New Century Resources has carried out a share placement exercise to raise A$52.9m ($40.45m) to finance the restarting of operating at its Century zinc mine in Queensland, Australia.

The institutional placement comprised around 44.1 million ordinary shares and saw participation from domestic and international institutional investors.

The company intends to use proceeds from the placement towards funding the restart of operations at the mine through initial tailings reprocessing.

In addition, proceeds will be used to finance the company’s corporate, general and administrative costs through to mid-2018.

“This highly successful placement puts New Century in a very strong financial position.”

New Century Resources managing director Patrick Walta said: “This highly successful placement puts New Century in a very strong financial position and allows us to rapidly progress the restart of the Century zinc mine and deliver on our strategy to become a globally significant zinc producer in 2018.”

The restarting feasibility study is set for completion later this mo h, and includes potential conversion of measured resource into ore reserve for the Century tailings deposit.

The mine has mineral resources of more than 2.6Mt of zinc, 700,000t of lead and 42.5Moz of silver. It closed last year.

Having acquired the mine earlier this year, the company is set to re-commission the existing Century processing plant.

Other infrastructure at the mine includes a camp, private airport and sealed runway, mining fleet, grid power connection, 304km slurry pipeline, as well as a shipping port and transhipment vessel in Karumba.