Gascoyne raises cash for Dalgaranga build

PERTH (miningweekly.com) – Junior Gascoyne Resources will raise up to A$55-million through a share placement and share purchase plan (SPP) to develop its Dalgaranga gold project, in Western Australia.

The ASX-listed company on Friday announced that it had successfully completed a bookbuild to raise up to A$50-million through a two-tranche share issue, priced at 50c a share.

The first tranche will comprise 74.9-million shares and will be conducted under the company’s placement capacity. The second tranche of 25.1-million shares will be subject to shareholder approval.

In addition, Gascoyne will also undertake an SPP, offering shareholders the chance to subscribe for up to A$15 000 of new shares, with the SPP to be capped at A$5-million.

“The overwhelming demand for this placement from supportive shareholders and a large number of new well-respected domestic and international institutional investors provides a strong endorsement of the quality of our high-margin Dalgaranga gold project in the Murchison region of Western Australia,” said MD Mike Dunbar.

A feasibility study of the Dalgaranga project has indicated potential to produce 592 000 oz over a six-year mine life. The project will require a capital investment of A$86-million, based on two opencut mines and a gravity and carbon-in-leach processing plant with a 2.5-million-tonne-a-year capacity.

The project is estimated to have a life-of-mine operating cash cost of A$869/oz and will deliver revenues of A$866-million.

“The company is now in the strongest position it has ever been and we look forward to rapidly advancing the development of Dalgaranga for the benefit of our shareholders,” said Dunbar.