Steven McClare has been announced as the new Hillgrove Resources CEO, replacing outgoing chief Greg Hall, and is raising equity.
McClare will step into the role on 27 May, with Hall stepping down tomorrow.
Speaking on the appointment, Hillgrove chairman Dean Brown welcomed McClare to the position, adding that the board believes [McClare] has the right experience and qualifications to guide Hillgrove Resources into its next phase of development”.
“The board has renewed its strategic focus on mine-site operations at Kanmantoo and McClare’s previous role as general manager of the Kanmantoo copper mine makes him uniquely positioned to provide the direction and operational oversight to increase production and develop Hillgrove’s exploration activities,” Brown said.
McClare was also previously the head of mining operations for Newcrest’s Cadia Valley operations.
The mining company has also launched a rights issue and finalised the refinancing of its debt facilities.
Hillgrove is undertaking a fully underwritten pro-rata non-renounceable rights issue to raise around $10 million.
“The package will provide amortisation of debt repayments to align with the most recent life of mine plan and additional equity will provide the ability to accelerate the exploration program of nearby targets in order to extend the mine life,” Hillgrove said in a company statement.
It will raise the funds through issuing around 40.3 million new fully paid ordinary shares to its shareholders on a 3 for 11 basis at a fixed price of .25 cents per share.
It has also refinanced its debt facilities, which comprise a US$14 million pre-export facility loan, the deferral and extension of obligations, and a $20 million performance bond facility, which is used primarily for the environmental bonds required to support the Kanmantoo project.