Crescent Gold Completes A$8.84 Million Capital Raising

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THE BOURSE WHISPERER: Perth-based gold producer Crescent Gold has raised $8 million in convertible debt. Due to overwhelming demand a further $844,000 was raised through a share placement using the company’s existing 15 per cent capacity.

The issue has been placed with sophisticated and professional investors and was closed heavily oversubscribed.

The $8M Convertible Note facility has a maturity date of 30 June 2012, a 7% coupon rate, and is convertible into ordinary fully paid shares at the lower of $0.05 or 85% of the 5 day Volume Weighted Average Price (VWAP) prior to conversion with one option for every two shares subscribed for.

The Key Terms of the Convertible Notes are as follows:

– Issued at a Face Value of 5 cents;
– Interest Rate of 7% per annum until redeemed or converted;
– The Maturity Date is 30 June 2012; and
– The Notes are convertible at any time before maturity with the conversion price being the lower of $0.05 per share or 85% of 5 day VWAP prior to receipt of conversion notice, with one option for every two shares subscribed for.

The Convertible Note facility will be subject to shareholder approval.

Besides the Convertible Note facility Crescent Gold also announced the successful completion of a placement of 16.88 million shares at an issue price of five cents per share to raise a further A$844,000.

This also received very strong support from sophisticated investors.

The combined funds raised will be used for development programs in the company’s projects within the Laverton region of Western Australia, the costs of the security issues, and for general working capital requirements.

“This funding agreement demonstrates the strong support from investors for Crescent’s gold production operations and gold development and exploration operations in the Laverton region of WA,” Crescent Gold managing director Mark Tory said in an announcement.”

“The company has rebounded from a difficult start to the year operationally, to be on track to exceed its previously forecast quarterly equivalent gold production for the June 2011 quarter.

“The company is progressing well with negotiating a new long-term financing facility to fund further capital development requirements of new open pits in the regions.”