Daniel Nonor
28 October 2009
ASX-listed gold explorer Perseus Mining has initiated a A$58.5 million capital raising, which would underpin the development of its flagship Ayanfuri gold project, in Ghana.
The raising would comprise two components, a placement of 15.6-million shares at A$1.50 a share to institutional investors in Australia, Asia and Europe, to raise A$23.4 million and a placement of 23.4 million subscription receipts at A$1.50 a receipt to investors in North America to raise A$35.1 million.
"Perseus is in the fortunate position of having two outstanding gold projects with excellent potential for growth and near-term production," said MD Mark Calderwood.
"Ayanfuri remains one of the largest gold deposits being developed by an Australian company today. With the company well funded, the lead engineers soon to be appointed, government approvals under way, project financing discussions well advanced, and construction on track to start early next year, we are increasingly confident of becoming a significant gold producer within 20 months," he added.
The issue of subscription receipts was subject to the completion of an agency agreement with the Canadian brokers, and a due diligence review, which was expected to be completed around November 5.
Thereafter, the proceeds from the issue of the subscription receipts will be held in escrow with the requirement that Perseus completes a listing on the TSX within 90 days.
The subscription receipts will be converted to ordinary shares in the company on a one-for-one basis upon TSX listing.
"The listing on the TSX will expand our international shareholder base and over time, is expected to increase trading volumes," said Calderwood.
Besides advancing the Ayanfuri project to the construction phase, which was anticipated to be in early 2010, funds raised would also be earmarked to expand exploration activities within Ghana and Côte d'Ivoire, and for working capital purposes.
The company noted that it was pursuing an aggressing exploration programme to increase its existing seven-million ounce gold resource base with seven drill rigs now in operation at Ayanfuri and Tengrela.
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