Australian gold developer and producer Primary Gold Limited announced that it has received “firm commitments” for a share placement to raise A$4 million (before cost) via a placement of 100 million ordinary shares at an issue price of 4 cents each, subject to shareholder approval.
Primary Gold said the funds would further contribute to the company’s plan to develop the Mount Bundy Gold Project including recommencing gold production at its wholly-owned Toms Gully mine.
“The Company will be assessing opportunities to increase the mine life at Toms Gully and to further underpin the Company’s longer term growth,” Primary Gold said in a statement to the ASX.
“Tom Gully Underground and the broader Mt Bundy project represent an exciting exploration opportunity located in the multi-million ounce Pine Creek Province. The +10 million oz Pine Creek gold camp, located to the south, provides genuine exploration analogy and an aspirational target for the Company’s lead-bank of over 1,500km2 of under-explored tenure across this well-endowed region.”
According to the company, Petersons Securities Ltd acted as the lead manager to the Placement.