THE BOURSE WHISPERER: Excelsior Gold (ASX: EXG) announced the completion of a placement to sophisticated and institutional investors, which resulted in the company raising $4.55 million.
The raising involved the issue of 75.8 million shares at a price of six cent per share and was supported by existing Excelsior shareholders as well as welcoming new investors to the register.
The placement was lead managed by Patersons Securities Limited.
Once the money is in the bank and the company can start to drawdown the project funding package it negotiated with Macquarie Bank in July, the Kalgoorlie North gold project will be fully-funded and production ready.
Excelsior said the funds will be applied to working capital and development requirements at the project.
“The successful completion of the placement is another positive step towards production at our flagship Kalgoorlie North gold project,” Excelsior Gold managing director David Hamlyn said in the company’s announcement to the Australian Securities Exchange.
“The significant demand received from new and existing shareholders represents a strong endorsement of the direction of Excelsior and the development strategy undertaken.
“The project is now fully funded and gold production is imminent.”