Argonaut, acting as Sole Lead Manager and Global Bookrunner for Gold Road Resources Limited (ASX: GOR) (“Gold Road”), has been successful in the Placement of 77.3 million new ordinary shares at an issue price of A$0.30 per share to new and existing institutional and sophisticated investors. The placement to raise A$23.2 million, was strongly oversubscribed and the calibre of the participants is testimony to the quality of Gold Road’s exploration projects.
Argonaut congratulates Gold Road on the raising.
The funds raised, together with existing cash reserves, will allow Gold Road to further expand on its success at its flagship Gruyere gold discovery by targeting resource expansion as well as expanding regional exploration activities by testing several exciting new targets identified in 2014 on the Yamarna Belt, a globally significant gold province in Western Australia.
Commenting on the capital raising, Gold Road Executive Chairman, Ian Murray commented “We are extremely pleased with the continuing strong support from our existing shareholders and from the wider investment market as Gold Road continues to further demonstrate the variety of large gold systems within our vast 5,000km2 tenement holding on the Yamarna Belt.
Our 2014 maiden 3.8Moz JORC Mineral Resource at Gruyere was achieved as a result of a measured exploration programme undertaken by our highly competent exploration and technical team who delivered ounces at less than A$2 per ounce and within 10 months of the initial discovery.
The success of this Capital Raising allows us to build on this recent exploration success and focus on maintaining Gold Road’s primary objective to grow the Company’s shareholder value unlocking Yamarna’s gold endowment.
The pipeline of work to be undertaken by Gold Road over the next 12 months on the Yamarna Belt in Western Australia means that we are in for a very exciting year ahead.”
Argonaut is delighted to be involved with Gold Road and looks towards the relationship continuing.
Additional information regarding the Company and the Placement can be found on the company’s website at www.goldroad.com.au.