Beadell Resources has received commitments to raise nearly A$46m ($35.28m) through the placement of approximately 159 million fully paid ordinary shares to domestic and international investors.
Furthermore, the company has also planned to offer all eligible shareholders the opportunity to participate in a share purchase plan to raise another A$5m ($3.84m) in the same price of the placement.
Beadell CEO and managing director Simon Jackson said: “We are delighted with the strong support received from leading domestic and international institutional investors and in particular we are pleased with the backing of a major UK institutional shareholder as cornerstone investor to the placement.
“The support of our major shareholders allows us to continue exploration and mill upgrades that are vital to maximising the returns our shareholders will enjoy from the Tucano mine.
“With a strong balance sheet, a virtually unexplored greenstone belt and a pathway to a fully optimised project with a long-life and significant production profile, the outlook for Beadell is exciting.”
The procured fund would be used for multiple activities associated with design and construction of its Tucano project in Brazil. In addition, the company has planned to upgrade the ball mill.
The company also intends to use funds to conduct exploration in the mining lease and surrounding tenements. The remaining funds will be used as working capital.
Beadell Resources acquired Tucano Gold Mine in 2010. The mine is located in the Amapá State in northern Brazil.
The mine includes around 2,500km² area comprising mainly contiguous exploration licences and a mining concession.
The placement is expected to be settled by the end of this month.