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Lachlan Star raises cash, sets records

5th April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Dual-listed Lachlan Star was looking to raise some C$12.93-million in a share placement to North American and European investors.

The gold miner said on Friday that the private placement would see the company issue more than 22.6-million ordinary shares, at a price of C$0.57 a share. The placement price represented a 12% premium to the five-day volume-weighted average price of the company’s shares on the TSX, prior to April 2.

The placement was being made under the company’s existing limits, and would not require shareholder approval.

Funds raised in the placement would be used for working capital and to advance capital works at its CMD mine in Chile.

Meanwhile, Lachlan Star on Friday also reported a gold production record for the quarter ended March, with production reaching 21 220 oz. The month of March also proved a record period for the company, with Lachlan Star producing 8 841 oz during the month.

During the quarter under review, Lachlan Star implemented two major changes at its CMD operation, including the implementation of an owner mining fleet, and the resumption of mining at the Chisperos deposit.

The ore contribution from the Chisperos pit saw average gold grades increase by some 21% from January to March, with the last two blasts in March averaging some 1 g/t gold.

Edited by Creamer Media Reporter

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