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Excelsior fully funded for Kal North start

27th October 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold developer Excelsior Gold is now fully funded to bring its Kalgoorlie North project into production by December, following a share placement to raise A$4.55-million.

The company reported on Tuesday that some 75.8-million new shares would be issued, at a price of 6c each, to a number of sophisticated and institutional investors.

“The successful completion of the placement is another positive step towards production at our flagship Kalgoorlie North gold project,” said MD David Hamlyn.

“The significant demand received from new and existing shareholders represents a strong endorsement of the direction of Excelsior and the development strategy undertaken. The project is now fully funded and gold production is imminent,” he added.

Excelsior recently signed a new ore treatment agreement at the Kalgoorlie North project with gold miner Norton Gold Fields, which would process an initial allocation of up to 2.9-million tonnes of ore at a minimum rate of 500 000 t/y over a five-year-and-ten-month period.

Excelsior had also been granted five yearly options, each to extend the processing agreement by an additional 12 months, providing that a potential 5.4-million tonnes of Excelsior ore could be processed at the Paddington mill, over a ten-year-and-ten-month period.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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