Apex Minerals says it will seek to raise $22.6 million through a 1 cent per share rights issue and a 1.8 cents per share placement to institutional investors to pay out its gold upside participation notes.
Apex announced to the ASX today it had reached agreement with all of its noteholders to pay out its outstanding notes for $18 million in two tranches.
The proceeds from the institutional placement will be used to pay the initial $5 million tranch, which is required to be paid by February 8.
The $13 million second tranch is due by March 31.
The rights issue, underwritten by Azure Capital, will be launched on February 10 and will result in Apex having 5.55 billion ordinary shares on issue.
Apex said with the elimination of the notes, shareholders would have better exposure to increases in the gold price.
Apex managing director Mark Ashley said the company was positioning itself for growth after eliminating the notes, the recently announced sale of its Gidgee gold exploration project, and an internal operational review.
"With increasing production and the elimination of the GUP Notes, and the increased cash flow that will result, will enable Apex to re-commencing exploration at Wiluna with an objective of further increasing feed to the process plant in the future," Mr Ashley said.
"The process facilities at Wiluna have the capacity to produce approximately 140,000 - 150,000 ounces of gold per annum.
"Currently the Wiluna process plant is just 50 per cent utilised with ore feed being the limiting factor.
"Our medium and longer term strategies are aimed at increasing mill feed."
