Gascoyne Resources has raised about $50 million through a private placement at an issue price of $0.50 per fully paid share.
Managing Director Mike Dunbar said the funds raised will used to finance the development of the Dalgaranga Gold Project in the Murchison region of Western Australia, as well as for exploration and working capital purposes.
“The overwhelming demand for this Placement from supportive shareholders and a large number of new well-respected domestic and international institutional investors provide a strong endorsement of the quality of our high margin Dalgaranga Gold Project in the Murchison region of Western Australia,” Mr Dunbar stated.
The company has recently consolidated its ownership of the Project through acquisition of the minority joint venture partner’s 20% interest in the Mining Lease and miscellaneous licences.
Mr Dunbar noted that Gascoyne had subsequently made significant stride towards development of the project, including finalisation of permitting and acquisition of long lead time items, and ongoing resource extension drilling funded by its existing cash position.
“The company is now in the strongest position it has ever been and we look forward to rapidly advancing the development of Dalgaranga for the benefit of our shareholders,” he concluded.