Miner raises $7 million for gold mine

Exco Resources has raised more than $7 million from a share placement agreement

Exco Resources has raised more than $7 million from a share placement agreement.

In a statement to the Australian Securities Exchange (ASX) the company said it had issued 30.6 million shares at 23.5 cents each.

The miner will use the capital to fund its White Dam Gold Project in South Australia.

Exco entered into a joint venture agreement Polymetals Group.

Under the terms of the planned agreement, Polymetals will acquire a 25% interest and manage the development and operation of the project. Implementation planning for the project is at an advanced stage with approval of a Mining and Rehabilitation Programme (MARP) having been received on 7 April 2009

The peak funding requirement for the project is estimated to be approximately $20m, with the intention that this will be met by a combination of equity and debt.

The proceeds of the current placement will be primarily utilised to meet Exco’s projected equity contribution.

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