Gascoyne Resources has received a $125 million funding package through a series of agreements to recapitalise the company and continue its mining projects.
The funding package will allow Gascoyne to recommence trading on the ASX on 24 September 2020 under a near board and management team.
Gascoyne stated that a number of growth initiatives can now be pursued by the company.
This includes resource definition drilling at the Gilbey’s and Sly Fox deposits at the Dalgaranga gold project in Western Australia and exploration on the broader Dalgaranga tenements. The company has also planned to advance the Glenburgh project in Western Australia.
Dalgaranga has recently been proved with a revised seven-year life of mine plan, with a production rate for the first four years of 70-80 thousand ounces per annum, plus three years of processing stockpiles at an average rate of 25-35 thousand ounces per annum.
“The company believes there are numerous exploration opportunities to improve and extend mine life at Dalgaranga and material exploration upside at the Glenburgh Project,” Gascoyne stated in an ASX media release.
Gascoyne chief executive officer Richard Hay said the funding package is the result of 15-months of significant work by Gascoyne’s team and advisors.
“Today’s landmark funding package is the culmination of significant hard work by the Gascoyne team and its advisors over a 15-month period,” he said
“it will facilitate the recapitalisation of the company and enable Gascoyne to pursue strategic growth opportunities with an enhanced balance sheet and funding capability.
“Importantly, the equity raising allows all existing shareholders in the Company to participate in the recapitalisation on the same terms as those participating in the placement.
“Investec Bank is a well-known and renowned provider of debt facilities to the global mining industry and we welcome them on board as our senior finance partner moving forward. Investec Bank put forward the most competitive debt solution and we are pleased to have a facility that is aligned to our recently announced updated life of mine plan.
“On behalf of the Gascoyne team, I wish to thank all key stakeholders for supporting the Company’s recapitalisation strategy to date. We look forward to building a solid future as a profitable West Australian gold producing business.”