FOCUS COMPLETES $32.3M PLACEMENT TO INSTITUTIONAL & SOPHISTICATED INVESTORS
- Strong institutional support for Focus’ plans to increase production by 30% to 130,000oz pa and accelerate exploration -
Australian gold producer Focus Minerals (ASX: FML) is pleased to announce the successful completion of its $32.3m share placement to institutional and sophisticated investors as part of a circa $40 million equity raising to increase production by 30 per cent to 130,000 ounces a year and accelerate exploration programs at its projects in the WA goldfields.
The institutional raising comprised the issue of 425 million new shares at an issue price of $0.076 per share. An accompanying Share Purchase Plan for existing eligible shareholders to raise a further $7m was closed last week. Both components of the offer were heavily oversubscribed.
Focus Minerals Chief Executive Campbell Baird said the strong take-up from existing institutional shareholders, introduction of a significant number of new institutional shareholders and the speed with which the SPP was filled reflected the strong support for Focus’ growth plans.
“We have a wealth of organic growth opportunities and a three-year strategic plan to extract the maximum value from these assets for shareholders,” he said.
“We will deliver 100,000oz in this calendar year with much of that weighted to the second half as we bring two new mines into full production. As these mines hit their straps, we expect to deliver a further 30 per cent increase in gold production to 130,000oz in calendar 2012.
“We also have two exciting exploration projects in our Greater Coolgardie tenements as well as our new Treasure Island Gold Project at Lake Cowan. We will make a significant investment in accelerating exploration at both these projects to unlock their value beyond 2012.”
Lot 1 of the Placement shares will be allotted today as will the SPP shares. The balance of the Placement shares will be allotted within the next 3 days.