Argonaut has been successful in the Placement of A$39,275,620 (gross) for Gold Road Resources Limited (ASX: GOR) (“Gold Road”) via a Placement to institutional and sophisticated investors of 89,262,773 new ordinary shares at an issue price of A$0.44 per share together with joint lead manager, Macquarie Capital (Australia) Limited.
The funds raised, together with existing cash reserves, will allow Gold Road to continue the momentum at its Gruyere Gold Project (“Gruyere”) by completing the Pre-Feasibility Study (“PFS”), with an expected completion in the March 2016 Quarter and Definitive Feasibility Study (“DFS”) by the end of 2016. The balance of funds raised under the Placement and accompanying SPP will be applied to regional exploration activities across the high-priority gold camp-scale targets at Yamarna, ongoing corporate costs and working capital.
Commenting on the Placement, Gold Road Executive Chairman, Ian Murray said “We are pleased with the success of the Placement, particularly the support of our existing shareholders and the introduction of several new, quality shareholders.
The recent increase in the JORC Mineral Resource at Gruyere to 5.51 million ounces was achieved as a result of a measured exploration programme undertaken by our highly talented exploration and technical team, who are now working to progress Gruyere from a major gold discovery into a significant gold mining centre.
In parallel, we now have the financial capacity to continue testing promising new exploration targets that exist throughout our dominant land holding in the Yamarna Belt.
With Stages 1 and 2 of the PFS due over the next seven months, as well as an increased exploration focus, we are in for a very exciting period ahead.”
Argonaut is delighted to support the growth of Gold Road and taking them to the next level.
Additional information regarding the Company and the Placement can be found on the company’s website at www.goldroad.com.au.