Rua Gold (TSX-V:RUA) has closed its finance offering, raising a total of C$33 million ($34.58 million) through two concurrent private placements.
The company raised C$24.99 million through the issue of 22.73 million shares at an offer price of C$1.10 per share, along with another C$8 million through the issue of another 7.27 million shares at the same issue price.
Raymond James and Cormark Securities acted as co-lead agents and joint bookrunners for this finance offering, along with Beacon Securities.
The funds raised will be used to fund exploration and development activities at the company’s New Zealand-based assets, which includes the Reefton and Glamorgan projects.
As reported by Mining.com.au, the company initially intended to raise C$25 million through the two offerings, before it was upsized due to “strong investor demand”.
CEO Robert Eckford says the company closed its upsized financing offer with lead participation from “two very well regarded new institutional investors taking our institutional ownership to over 40% of our share count”.
“The endorsement by this group of sophisticated investors supports the strong conviction in both uncovering the potential of our undrilled epithermal opportunity in Glamorgan on the North Island of New Zealand, as well as supporting the execution of our fast tracked plan to production in the Reefton Goldfield on New Zealand’s South Island,” Eckford says.
“The proceeds from this financing will enable us to accelerate exploration efforts and unlock the project’s high grade potential.
“We sincerely appreciate the confidence placed in our team and strategy by these valued partners, and we look forward to delivering meaningful progress and long-term value for all stakeholders in the months and years ahead.”
Rua Gold is a mineral explorer strategically focused on discoveries in New Zealand.
Write to Maddison Elliott at Mining.com.au
Images: Rua Gold
