Pacgold (ASX:PGO) has received firm commitments for a $13 million placement to fund the acquisition and restart of the White Dam Gold Project in South Australia.
The two-tranche placement involves the issue of about 173.3 million new shares at $0.075 each, strongly supported by new and existing institutional and sophisticated investors.
Proceeds will go toward refurbishing and recommissioning plant and infrastructure at White Dam, exploration of existing resources, and advancing drilling and study work across Pacgold’s North Queensland gold-antimony projects.
Bell Potter Securities and Taylor Collison acted as joint lead managers, earning a 5.5% fee on placement proceeds and 20 million unlisted options exercisable at $0.105.
Directors intend to subscribe for $515,000 in shares, subject to shareholder approval at the 17 November annual general meeting.
Managing Director Matthew Boyes said the transaction represented a pivotal step in the company’s growth.
“The support from shareholders for this transformational acquisition is a clear demonstration of confidence in Pacgold’s pathway to near-term gold production and cash flow generation,” Boyes said.
Pacgold said the acquisition delivers immediate production capacity and exploration upside, supported by established infrastructure and remaining gold within the heap leach at White Dam.
Write to Dan Petrie at Mining.com.au
Images: Pacgold
