Crater shakes the can
PERTH (miningweekly.com) – Gold junior Crater Gold Mining has raised A$3.4-million through a share placement as the company targeted positive cash flows at its High Grade Zone project, in Papua New Guinea.
The capital would be raised in two tranches, with an initial A$1.3-million raised through the placement of 16.25-million shares, at a price of 8c a share.
The first tranche placement would fall within the company’s existing capacity and would not require shareholder approval.
A second tranche of shares was expected to raise an additional A$2.1-million, with the placement made to shareholder Freefire Technology, which currently held a 62% interest in Crater and associates of chairperson Sam Chan.
The miner pointed out that, as a result of the first tranche capital raise, Chan and Freefire’s shareholding in Crater would be diluted. The proposed second tranche placement would retain Freefire’s interest in Crater at 62%.
“In this difficult funding environment, we believe this is a vote of confidence in our High Grade Zone project and management team. We see considerable growth in our future cash flows,” Chan said of the capital raise on Thursday.
Earlier this year, Crater sold its first gold from High Grade Zone, after mining operations resumed in March. Crater had initially been ordered to cease mining activities in late December, pending the conclusion of an inquiry into the circumstances surrounding a November vehicle accident, which claimed the life of the driver.
Crater was expected to produce some 10 000 oz of gold in the first full year of production.
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