THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) announced an institutional placement and a 1 for 10 pro-rata accelerated non-renounceable entitlement offer with the intention of raising approximately $74 million.
Gold Road already has plenty of cash on hand and is currently fully-funded to complete its ongoing Gruyere project Feasibility Study (FS).
The company indicated the funds raised via the Equity Raising will be used to:
Purchase long lead time capital items;
Commence early works and front end engineering and design (FEED);
Provide flexibility to fund possible Gruyere open pit depth extensions as well as regional exploration programs at priority targets across the Yamarna Greenstone Belt; and
General working capital and corporate purposes.
By raising this capital now, Gold Road insists the Gruyere project execution plan will be further de-risked and de-bottlenecked allowing for a smoother development schedule.
“This Equity Raising follows the release of the detailed Pre‐Feasibility Study confirming the Gruyere project as one of Australia’s best undeveloped gold deposits, with a long life and low costs,” Gold Road Resources executive chairman Ian Murray said in the company’s announcement to the Australian Securities Exchange.
“The findings indicate a technically sound and financially viable project, which is anticipated to support strong margins and cash flow.
“The decision to raise additional equity now is a strong signal of Gold Road’s commitment to developing the Gruyere project.
“It also highlights significant investor interest in supporting Gold Road in this endeavour.
“This Equity Raising will enable Gold Road to de-risk and to de-bottleneck the Gruyere project, and to expedite its development, through the purchase of long lead time capital items and commencement of early works and FEED, in parallel with the completion of the Feasibility Study and a continued focus on exploiting priority exploration targets across the Yamarna Greenstone Belt.”