Eastern Goldfields seeks $30m for development of gold projects

The Davyhurst plant

Eastern Goldfields has secured an agreement for a $17.5 million investment in the company by international investor, Hawke’s Point Holdings.

The gold miner, which launched production at its Davyhurst operation this year, is also seeking to raise an additional $12.5 million by issuing up to 150 million shares for 20 cents each.

Eastern Goldfields plans to use the funds for exploration, ongoing resource development and feasibility studies at its Mt Ida and Menzies projects.

The Hawke’s Point agreement will see the investment company take 87.5 million shares in Eastern Goldfields. Hawke’s Point must also procure additional subscribers for an aggregate amount of $12.5 million.

Chairman Michael Fotios welcomed Hawke’s Point as a significant shareholder of Eastern Goldfields.

“I am also pleased to receive considerable ongoing support from our existing shareholder base,” Fotios said.

“The funds raised will be used to support Eastern Goldfields’ ongoing operations at Davyhurst and further progress exploration activities. This new investment is a strong endorsement of the quality of the assets and our overall strategy.”

Eastern Goldfields poured gold at the historic Davyhurst site in July, the first production at the mine since 2008.

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