JOHANNESBURG (miningweekly.com) – Gold miner Ramelius Resources has set a production target of 150 000 oz/y by 2018, after receiving strong support from institutional investors for a A$25-million capital raising.
The company, which produced 110 839 oz in the 2016 financial year and aims to increase that to 135 000 oz in the 2017 financial year, will use the funds from the placement to fast-track multiple project developments at its Mt Magnet mine, in the Murchison region of Western Australia.
The accelerated development would be undertaken without compromising Ramelius’s ability to move on current and future opportunities, MD Mark Zeptner said on Tuesday.
Ramelius will accelerate the Water Tank Hill and Milky Way developments at Mt Magnet and increase resource extension drilling of brownfield targets with a focus on improving the overall resource and associated mine life at the Mt Magnet and Vivien mines.
“We are very pleased with the support received for our new four-year mine plan and the possibilities of increased production going forward. This has transferred directly into demand for the placement, which was heavily oversubscribed, and Ramelius welcomes the addition of some of the world’s most respected general and precious metals funds as shareholders of the company,” added Zeptner.
The placement of 50-million new shares to institutional investors at A$0.50 a share will help Ramelius to increase its institutional investor representation from about 10%, which is considered relatively low to its peers, to closer to 20%. Zeptner said that the company would grow this further over time.
“It is important to note, whilst always recognising our current shareholder base, that greater institutional investor representation should enable Ramelius to go to the next level.”
Besides Mt Magnet and Vivien, Ramelius also owns the Kathleen Valley gold mine, near Vivien in the Leinster district. The Burbanks treatment plant is located south of Coolgardie and is on care and maintenance.
Ramelius reported gold production of 32 752 oz in the June quarter, exceeding its guidance range of 28 000 oz to 32 000 oz at an all-in sustaining cost of A$1 145/oz.
The Mt Magnet mine produced 12 577 oz, Vivien 5 430 oz and Kathleen Valley 14 745 oz in the three-month period.
Group production for the September quarter is expected to be in the 31 000 oz to 35 000 oz range.
The group’s 2017 financial year production will comprise 65 000 oz from Mt Magnet, 55 000 oz from Vivien and 15 000 oz from Kathleen Valley.
Edited by: Creamer Media Reporter
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