PERTH (miningweekly.com) – Gold and base metals producer Aurelia Metals has raised some A$37-million under the retail component of its 1-for-4.2 accelerated non-renounceable entitlement offer.

The retail offer formed part of a larger A$130-million capital raise to fund the acquisition of the Dargues gold mine, in New South Wales.

Aurelia on Tuesday said that under the retail entitlement offer, some 86-million shares would be issued at a price of 43c each to raise A$37-million. The company has received valid applications for eligible retail shareholders for some eight-million new shares, representing a participation rate of some 9%.

In addition, applications totalling some two-million new shares were accepted under the top-up facility, increasing the total take-up from eligible retail shareholders to 10-million new shares.

Some 76-million new shares not taken up under the retail entitlement offer will be allocated to the sub-underwriters of the retail entitlement offer.

The new shares are expected to start trading on the ASX on December 11.

Aurelia in November announced plans for the acquisition of the Dargues mine for A$205-million, consisting of A$176-million in cash, A$24-million in shares and a contingent payment of up to A$5-million.

The company initially raised A$93-million through an institutional share placement and the institutional component of the non-renounceable entitlement offer.

Dargues, which delivered its first gold shipment in June of this year, consists of an underground mine and a newly constructed processing plant which is expected to ramp up to nameplate capacity of 355 000 t/y by mid-2021. The project produces some 45 000 oz/y to 55 000 oz/y at an average all-in sustaining cost of between A$1 150/oz and A$1 350/oz.

Aurelia previously told shareholders that the acquisition of Dargues was consistent with the company’s strategic objectives, with the company to focus on continuing production ramp-up, implement its identified mine design and process circuit improvements, and extend the mine life and annual production rates, subject to permitting approvals.