Ramelius taps new funding for Vivien buy
PERTH (miningweekly.com) – Gold miner Ramelius Resources has entered into a A$16-million gold pre-pay finance facility with Deutsche Bank, which would allow the company to fast-track the acquisition and potential pre-mining work at the Vivien gold project, in Western Australia.
Ramelius is buying Vivien from fellow gold miner Gold Fields, in a deal valued at A$10-million.
Ramelius was forced to seek other avenues of funding after a September nonrenounceable rights issue, which had aimed to raise A$16.3-million, through the issue of 91-million shares at 18c each, only raised A$253 929.
MD Ian Gordon said on Tuesday that the agreement with Deutsche Bank allowed Ramelius to maintain a robust cash balance during expected ongoing challenging market conditions into 2014, but deliver the company with the flexibility to bring the Vivien project to a decision to mine by the end of the June quarter next year.
Under the terms of the facility, Ramelius would acquire put options over 7 500 oz/m of gold, at a strike price of A$1 200/oz, for the period from April to August 2014, in line with the company’s existing gold put option purchase programme.
Ramelius already holds put options over 7 500 oz/m from November 2013 to March 2014, at a strike price of between A$1 200/oz and A$1 250/oz.
Gordon said that the facility would be fully repaid in equal installments through the delivery of gold from January to August next year, and would be secured against the Mount Magnet assets.
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