Beadell taps market for $51m to fund Brazilian mine upgrades

Beadell Resources' Tucano gold mine

Brazilian gold miner Beadell Resources will raise up to $51 million to fund mine upgrades and exploration activities at its Tucano operation.

Beadell, which has been in a trading halt on the ASX since last week, has already received commitments to raise $46 million through a placement of 159 million shares at 29 cents per share. The company plans to raise up to an additional $5 million, at the same share price, to eligible shareholders.

In an ASX announcement, Beadell said the funds would be used for activities associated with the design and construction of plant upgrades at Tucano, including a ball mill; ongoing exploration at the site; and for working capital.

Beadell chief executive officer Simon Jackson said support for the placement would allow the company to continue exploration and mill upgrades that are vital for the Tucano mine.

“With a strong balance sheet, a virtually unexplored greenstone belt and a pathway to a fully optimised project with a long life and significant production profile, the outlook for Beadell is exciting,” Jackson said.

Tucano, which is in the Amapá state in the north of Brazil, produced 122,292 ounces of gold in the 2015 calendar year. Beadell acquired the mine in 2010.

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