PERTH (miningweekly.com) – ASX-listed junior Eastern Goldfields has raised A$25-million through a share placement, paving the way for a restart of gold production at the Davyhurst project, in Western Australia.
The company on Tuesday noted that it had received applications for more than 166.6-million shares, at a price of 15c each, after its initial share placement was oversubscribed.
“This is a tremendous result for the company and will provide great impetus in Eastern Goldfields’ application to have its shares successfully requited on the ASX in the coming weeks, after a number of years in suspension,” said executive chairperson Michael Fotios.
“The capital raising is also a significant milestone towards recommencing gold production at the Davyhurst project, and is a strong signal of support for both the asset and the Eastern Goldfields team.”
The Davyhurst project produced some 152 690 oz of gold between 2000 and 2008, and was estimated to host a total resource of 5.4-million tonnes, grading 2.28 g/t gold for 402 000 oz of gold.
Edited by: Creamer Media Reporter
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