Doray Minerals, which runs the Deflector gold-copper mine in Western Australia, has announced the successful completion of a $25 million, two-tranche placement.
The placement is intended to improve exploration opportunities, boost underground development at Deflector and reduce the company’s $47.5m debt by $18.5 million ($14 million from placement, $4.5 million from balance) to $29 million.
89.3 million company shares will be issued to investors at a price of 28 cents a share, a 12.5 per cent discount on the company’s 32 cent share price reported at last close.
The first tranche represents roughly 60 per cent of issued shares (53.54 million), while the second tranche (35.74 million shares) will be ratified at a meeting on or around April 5.
Leigh Junk, managing director of Doray, said the company had worked tirelessly to turn things around over the last 14 months, with the Deflector operation now running smoothly and completion of the current drilling program at nearby Da Vinci deposit forthcoming. Doray’s other major WA project, the Andy Well gold project, closed its doors last month after four years of production.
“We have been fortunate to have the support of some very loyal shareholders during this turnaround and we appreciate the contribution they have made to the company,” he said.
Last month, Doray returned a large, high-grade gold result from Da Vinci of 260 grams per tonne (g/t) of gold over a two-metre interval, with other positive results including 56.3g/t for 11m and 34.5g/t for 10.7m.