Gascoyne to raise $55m for Dalgaranga gold project development

Gascoyne Resources plans to raise up to $55 million to develop the Dalgaranga gold project in the Murchison region of Western Australia.

The project, which covers most of the Dalgaranga greenstone belt, has JORC measured, indicated and inferred resources of 25.7 million tonnes (Mt) at 1.4 grams per tonnes of gold for 1.12 million ounces of contained gold.

Gascoyne announced last week that it had completed a bookbuild to raise $50 million at an issue price of 50 cents per share, to be used for the development of the project, exploration and working capital.

In addition, the company is giving its shareholders the opportunity to participate in a share purchase plan (SPP) to raise another $5 million, also at 50 cents per share price.

“The company is now in the strongest position it has ever been and we look forward to rapidly advancing the development of Dalgaranga for the benefit of our shareholders,” Gascoyne managing director Mike Dunbar said.