PC Gold (ASX:PC2) is raising $75 million through a single tranche institutional placement, backed by incoming Non-Executive Chairman Richard Clark.
The company will issue 71.4 million shares at an offer price of $1.05 per share, representing a 7.9% discount to the last closing price of $1.14 per share on 24 August and a 5.4% discount to the five-day volume weighted average price.
Clark and associates have committed to invest $2 million into this placement at the offer price, equating to around 1.9 million shares. Board engagement in this placement is subject to shareholder approval.
Wallaby Group is acting as the joint lead manager and sole bookrunner to this placement, along with Hannam & Partners and Canaccord Genuity as the other lead managers.
The placement provides PC Gold with a pro-forma cash balance of around $96.7 million.
Proceeds from this placement will be used, along with existing cash, to fund drilling programs at PC Gold’s Spring Hill Project in the Northern Territory.
Drilling activities include around 80,000m of ongoing surface exploration and resource definition drilling, the refurbishment of underground infrastructure and 20,000m of phase one underground drilling, and 25,000m of reverse circulation grade control and infill drilling at the Hong Kong and Eastern zones.
PC Gold will also deploy funds to support a Prefeasibility Study (PFS) and a Definitive Feasibility Study (DFS) ahead of a final investment decision. The proceeds will also cover camp refurbishment costs at Pine Creek and the establishment of a photon assay laboratory.
CEO Ashley Pattison says the company has received ‘strong’ demand for this placement, which acts as a “clear endorsement of the scale and quality of Spring Hill”.
“This funding ensures we are fully capitalised to deliver our 2026 and 2027 work programs, including an increased drill program of 125,000m, completion of the PFS and DFS studies, and the refurbishment of underground infrastructure to facilitate high-impact underground drilling program and unlock the high-grade underground opportunity,” Pattison says.
“With the recent appointments of Rick Clark and Matt Scully to the board, we are focused on accelerating the development timetable for Spring Hill and delivering value for PC Gold shareholders.”
PC Gold appointed Clark and Scully to the board earlier this month to strengthen the company’s development capabilities, as reported.
Prior to this, PC Gold achieved an 84% increase to the mineral resource estimate for its Spring Hill Project.
The updated resource estimate delivered a total of 43.6 million tonnes @ 1.1 grams per tonne gold for 1.51 million ounces.
PC Gold is a gold explorer and developer focused on its flagship Spring Hill Project in the Northern Territory.
Write to Maddison Elliott at Mining.com.au
Images: PC Gold
