THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) completed a bookbuild to raise up to $50 million at an issue price of 50 cents per fully paid share.
Gascoyne Resources said the Placement was heavily oversubscribed by a number of leading domestic and international institutional and professional investors.
The company, in addition to the Placement, announced its intention to offer eligible shareholders the opportunity to participate in a Share Purchase Plan to raise up to a further $5 million, at the same price as the Placement.
Gascoyne will use the funds for development of the company’s Dalgaranga gold project in the Murchison region of Western Australia.
“The overwhelming demand for this Placement from supportive shareholders and a large number of new well respected domestic and international institutional investors provides a strong endorsement of the quality of our high-margin Dalgaranga gold project in the Murchison region of WA,” Gascoyne Resources managing director Mike Dunbar said in the company’s announcement to the Australian Securities Exchange.
“The company is now in the strongest position it as ever been and we look forward to rapidly advancing the development of Dalgaranga for the benefit of our shareholders.”
Gascoyne explained the Placement will be undertaken in two tranches.
The first tranche of the Placement, which is scheduled to settle on or before, but no later than Friday 24 February, will consist of 74.9 million shares in total.
The second tranche of the Placement, which is scheduled to settle on or about Thursday 16 March and is subject to shareholder approval, will be for up to 25.1 million shares.