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Ramelius shakes can for Vivien funding

12th September 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold miner Ramelius Resources is looking to raise up to A$16.3-million to bring forward the acquisition and development of the Vivien gold project.

The ASX-listed Ramelius said on Thursday that it would launch a one-for-four non-renounceable entitlement issue of new shares at 18c each. Ramelius was expecting to issue some 91-million new shares.

The capital raising was in addition to the recent share placement to Sprott Asset Management, which raised some A$5-million earlier this month.

“We appreciate the support we have received from Sprott Asset Management under the recent placement, and we are pleased to provide all shareholders with the opportunity to acquire further shares in the company,” said MD Ian Gordon.

He added that the offer price represented a 10% discount to the recent placement price, which was priced at 20c a share.

Gordon said that funds raised from the entitlement issue would ensure that the company was in a stronger financial position to fast-track exploration and development of the Vivien gold project, in Western Australia.

Vivien was acquired from fellow gold miner Gold Fields, in a deal valued at A$10-million.

Meanwhile, Ramelius on Thursday also updated its mineral resource and reserve estimate, with the company stating that it owned a mineral resource of some 37.8-million tonnes, grading 2.1 g/t gold for 2.57-million ounces of contained gold.

This was a 266 000 oz reduction from the June 2012 estimate, and included revised modelling, resource categorization and mining depletion.

Ore reserves were currently estimated at 10.1-million tonnes, grading 1.8 g/t gold for 595 000 oz of contained gold, an increase of 25 000 oz on the previous estimate.

The net increase related to additional reserves at the Water Tank Hill and St George underground deposits, and revised pit designs at the Galaxy deposit.

Edited by Creamer Media Reporter

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