Apex Minerals announced on Friday a $108.6 million rights issue, in a further effort to eliminate debt and raise capital following the sale of its Aphrodite gold project last week.
The company announced the nine-for-two renounceable rights issue at an offer price of four cents per share, representing a 59% discount of Apex’s closing price on 21 September, prior to a trading halt.
$53 million of the proceeds will be allocated to completely repaying the company’s debt, while a further $23 million will be invested into mine development.
Apex has ambitions of becoming a substantial mid-tier gold producer with annual production of over 140,000 ounces.
The company said the mine development funds are part of a revised operating plan that will see mining at four independent underground zones over the next six months.
Apex previously only operated a single production zone.
Around $16 million will be devoted to working capital, while $10 million will be used to repay a short term facility.
According to Apex managing director Mark Ashley, the company has resolved all the operational issues that arose in the middle of the year.
“The restructure will enable us to reap the benefits of this work by growing production and taking full advantage of the company’s significant gold inventory,” he said.
The company announced the sale of its Aphrodite project to un-listed Aphrodite Gold for around $7.5 million last Thursday.