The Newswire

Your daily serving of financial goodness

Gold Road Successfully Raises $56.6 Million Via Placement and Institutional Entitlement Offer

Gold Road Successfully Raises $56.6 Million Via Placement and Institutional Entitlement Offer
The funds raised will be used to purchase long lead time capital items, commence early projects and front end engineering and design (FFED).
Apr 29, 2016 By Kaivalya Kandarpa Tags: GOR

Gold Road Resources Limited (ASX:GOR) announced the completion of the Placement and the institutional component of its 1 for 10 accelerated non-renounceable pro-rata entitlement offer, raising $56.6 million at $0.44 per new share. The company also announced the details of the upcoming retail entitlement offer.

Approximately 98.1 million shares were issued to various global institutions, raising a total of $43.1 million through the Placement. The Institutional Entitlement Offer raised approximately $13.5 million and was in strong demand amongst the existing institutional shareholders.

Gold Road’s Executive Chairman, Mr. Ian Murray commented on the raising: “We are encouraged by the strong support we have received from both existing and new institutional shareholders, as demonstrated through the high level of participation in the Entitlement Offer and Placement. Further, we are delighted by the enhanced breadth of the share register as a result of the introduction of new, high calibre global institutions, including the three North American cornerstones.”

The retail component of the entitlement offer is aimed at raising approximately $17.4 million through a 1 for 10 fully underwritten, non-renounceable pro-rata entitlement offer at $0.44 per new share. The new shares represent a 4.3% discount to the last closing price of $0.46 as at 26 April 2016.

The retail entitlement offer will commence on 3 May 2016 and close on 16 May 2016. GOR shareholders who hold the stock as at 7 pm (Perth time) on 29 April 2017, are eligible to take part in this offer.

Funds Will be Used to Support the Gruyere Project 

Gold Road is sufficiently funded with existing cash on hand to complete the Feasibility Study on the Gruyere project. The funds raised will be used to purchase long lead time capital items, commence early projects and front end engineering and design (FFED). The proceeds will also be used to provide flexibility to fund potential Gruyere open pit depth extensions and regional exploration programs across the Yarmana Greenstone Belt.

Mr. Murray further commented on the Gruyere Project: “This equity raising follows the release of the detailed Pre-Feasibility Study confirming the Gruyere Project as one of Australia’s best undeveloped gold deposits, with a long life and low costs. The findings indicate a technically sound and financially viable project, which is anticipated to support strong margins and cash flow.”

Share this article

Kaivalya Kandarpa Author: Kaivalya Kandarpa Apr 29, 2016

Kaivalya is an equity analyst and a client advisor at Wise-owl. She specialises in fundamental and technical analysis for large and mid-cap companies. Having completed her bachelor's degree in Business Administration majoring in Finance, Kaivalya has a comprehensive understanding of international stock market movements. She tracks local and overseas markets and compiles analytical reports for various industries.

Macarthur Minerals a Cliffhanger for Speculative Investors?

Iron ore and lithium exploration company Macarthur Minerals seeks to list on the ASX with the ticker code MMM.

Author: Simon Herrmann May 23, 2017

Errors

Sign Up for Free Trial
Subscribe
Recent Tweets
Recent News