Gascoyne seeks funding for Dalgaranga gold

Gascoyne Resources is raising up to $24 million for its Dalgaranga gold operation in Western Australia.

The funds will be used for construction capital at Dalgaranga, final payment of the project’s vendor and exploration.

Gascoyne will raise around $15 million by issuing 50 million shares at 30 cents each, with the option to accept oversubscriptions for a further $4 million.

The offer price is at a 16.7 per cent discount to the company’s closing price on August 15.

It will also provide shareholders with the opportunity to buy new shares to raise an additional $5 million.

Gascoyne continues to ramp up operations at the Dalgaranga site, which includes a 2.5Mt/y processing facility.

The company poured first gold during the June quarter and reported last month that 7400oz had been recovered from the project.

Gascoyne plans to declare commercial production in the second half of the 2018 calendar year once it has increased activities to its target mining rate.

The company plans to produce 100,000oz/y at Dalgaranga.