Argonaut acted as Joint Lead Manager to successfully raise A$21.5 million for Gascoyne Resources Limited (ASX:GCY) (“Gascoyne” or “the Company”). The Company raised funds from Australian and international institutional and professional investors by way of a placement at an issue price of A$0.38 per share. The placement was heavily oversubscribed with significant demand generated from new major domestic and international institutional investors.
Gascoyne has confirmed that funds raised pursuant to the Placement will be applied towards the exploration and development of both the Dalgaranga Gold Project and the Glenburgh Gold Project, and for working capital. The Company has budgeted to spend approximately $6.5 million on exploration at the Dalgaranga and Glenburgh Gold Projects in the period to 30 June 2018.
Commenting on the Placement, Gascoyne’s Managing Director, Mike Dunbar, said:
“We are very appreciative of the strong support we have received for the Placement, in particular, from our existing shareholders. We are also pleased to welcome a number of new domestic and international institutional and professional investors onto our share register, which is a great endorsement of both the Company and our projects. 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. To build on that success we have an aggressive exploration program planned to commence as soon as possible at both our Dalgaranga and Glenburgh projects, with the aim of continuing to extend mine life at Dalgaranga, building our resource base at Dalgaranga and Glenburgh, and targeting new discoveries.”
He went on to conclude:
“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.”
Argonaut is delighted to continue to provide support to Gascoyne and looks forward to our ongoing work with the company.
Additional information regarding Gascoyne can be found on the company’s website at www.gascoyneresources.com.au
