News: Pacific Niugini extends entitlement issue as gold production beckons

Pacific Niugini (ASX:PNR) is giving shareholders more time to participate in its one for four non-renounceable entitlement issue priced at $0.05 to raise up to $4.9 million.

This is on the back of recent results including the discovery of bonanza gold grades and the imminent start of gold processing.

The entitlement issue includes one attaching option for every two shares subscribed that is exercisable at $0.06 and expires two years after issue.

It previously raised $3.3 million through an oversubscribed issue of convertible notes to sophisticated investors.

Last month, the company encountered bonanza gold grades of up to 239 grams per tonne while progressing ore development at its 80% owned Nicolsons Mine near Halls Creek, Western Australia.

While these are hosted in narrow quartz veins, the overall face grades are also high, providing potential for overall grades to be higher than estimated in its resource model.

Refurbishment of the processing plant is nearing completion and the company remains on track to start gold production in August 2015.

This provides an immediate four year production plan with high grades and planned annual production of 25,000 to 30,000 gold ounces.

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