THE BOURSE WHISPERER: Doray Minerals (ASX: DRM) announced it has secured debt and equity funding for construction and development of the company’s 100 per cent-owned Deflector gold project, located in the southern Murchison Region of Western Australia.
The financing comprises new corporate finance facilities with Westpac Banking Corporation, a recently completed equity placement of $13.8 million and a fully underwritten non-renounceable entitlement issue to raise approximately $12.9 million.
Doray said Westpac had confirmed credit approval totalling $90 million (including a $5 million contingency facility).
The company explained the balance of its existing project finance facility will be rolled into the new facilities.
This results in the new corporate finance facility providing debt funding of approximately $60 million to $65 million (including the contingency facility) to fund construction and development of Deflector.
Doray went on to acknowledge the new corporate finance facilities offer the company greater flexibility for the movement of cash between its operations and exploration programs as required.
“With existing cash reserves, projected cash flows from Andy Well over the next 12 months, and the proceeds from the Westpac facility and equity raising announced today, we are now fully-funded for all construction, development and working capital expenditures to bring Deflector into production,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.
“We can now focus on growing the company through the development and commissioning of our second high-grade, low-cost gold operation at Deflector.”