Ann: Gascoyne Raises $21 Million in Oversubscribed Placement, page-5

Gascoyne eyes $20m raising for Dalgaranga project

Gascoyne eyes $20m raising for Dalgaranga project

Stuart McKinnon
Monday, 20 November 2017 2:18PM

Gascoyne Resources boss Mike Dunbar. Picture: Picture: Mary Meagher/Kalgoorlie Miner.
Shares in Gascoyne Resources have been placed in a trading halt ahead of an expected $20 million placement to help fund its $100 million Dalgaranga gold project 70km north-west of Mt Magnet.
The shares will be priced at a discounted 38¢-a-share, representing a 10.6 per cent discount to the company’s last traded price of 42.5¢.
The funds will be used for exploration and development work at both the Dalgaranga and Glenburgh projects.
Dalgaranga is more than 50 per cent complete with first gold production scheduled in the second quarter of next year.
Gascoyne is expected to announce final Australian bank debt funding to complete the project by the end of this month with first debt drawdown in December.
The company is also expected to announce the appointment of its development manager Ian Kerr to its board as executive director of development to help drive the final stages of Dalgaranga’s construction and commissioning.
The former Mintrex executive has 34 years experience in the mining industry with project management roles at Placer Dome, Regis Resources, Lycopodium and Western Mining Corporation.
The appointment follows the hiring of former Macquarie Group financing expert Sally-Anne Layman as a non-executive director in June.
Dalgaranga will employ a peak workforce of 280 during construction and 250 during steady-state operations with the project expected to produce 100,000oz of gold a year.
Last month, Gascoyne named NRW Holdings as the preferred contractor for a $300 million mining contract at Dalgaranga covering four open pits over an initial six years.
GR Engineering is on site building the 2.5mtpa processing plant, which is more than 75 per cent complete.
Hartleys and Argonaut will act as joint lead managers for the placement.