THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) completed a placement to raise approximately $21.5 million at an issue price of 38 cents per share.
Gascoyne Resources said the placement attracted strong support shown from existing institutional shareholders and demand from new major domestic and international institutional investors.
The company indicated the funds will be applied towards regional exploration at the company’s Dalgaranga and Glenburgh gold projects in Western Australia, in particular development of the Dalgaranga gold mine.
Gascoyne signalled its intentions to undertake an aggressive exploration program at both Dalgaranga and Glenburgh, with the aim of extending mine life at the Dalgaranga gold mine, expanding the resource base at Dalgaranga and Glenburgh, and to target new discoveries.
The company has budgeted an exploration spend of approximately $6.5 million at Dalgaranga and Glenburgh through to 30 June 2018.
“We are very appreciative of the strong support we have received for the Placement, in particular, from our existing shareholders,” Gascoyne Resources managing director Mike Dunbar said in the company’s announcement to the Australian Securities Exchange.
“While we are focused on bringing Dalgaranga into production and remain on track and on budget to commence production in the first half of 2018, the recent growth in the Dalgaranga mine plan has demonstrated the positive impact that exploration success, such as that at Sly Fox, can have on the project economics.
“With gold production commencing at our Dalgaranga gold project in the first half of 2018 and an aggressive exploration program on our highly prospective acreage about to commence, we look forward to delivering on an exciting phase for the company as it progresses from developer to producer, and systematically drill testing the significant exploration potential of our two WA gold projects.”