Beadell raises A$51m for Tucano

PERTH (miningweekly.com) – Gold miner Beadell Resources will raise some A$51-million to fund work at its Tucano gold project, in Brazil.

Beadell on Tuesday said some A$46-million will be raised through the placement of 159-million shares to institutional and sophisticated investors, priced at 29c a share.

The share placement will be conducted under the company’s placement capacity and will not require shareholder approval.

A further A$5-million will be raised through a share purchase plan, under which current shareholders will be allowed to subscribe for up to A$15 000 of new shares, also priced at 29c a share.

“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,” said Beadell CEO and MD Simon Jackson.

“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 funds raised will be used to order long-lead items associated with the design and construction of plant upgrades, including a ball mill, as well as to fund exploration to add quality ounces into the mine plan.

Beadell is eyeing a possible underground development at the Tucano mine after an earlier prefeasibility study revealed that the project could recover some 310 000 oz of gold over a mine life of seven to eight years.