Gold Road raises $39m for Gruyere

Gold Road Resources has raised $39.3 million in an oversubscribed placement and is now fully funded to complete a feasibility study on its Gruyere project east of Laverton.

The Perth-based explorer placed 89.3 million shares at 44 cents each to new and existing institutions and sophisticated investors, and said it would undertake a share purchase plan whereby shareholders could subscribe for up to an additional $15,000 each in the company’s shares.

The SPP will be made at the same price at the placement and capped at $10 million.

The company said the funds raised, together with existing cash reserves, would allow it to continue momentum at the Gruyere project by completing a pre-feasibility study, which is due in the March 2016 quarter, and a definitive feasibility study by the end of next year.

“Stage 1 of the PFS is on track to be completed by the end of the September 2015 quarter,” the company said.

“The key to this stage of work will be the selection of the optimal throughput rate and energy source for the Gruyere processing plant.

“The outputs from the Stage 1 PFS will be used to complete the second stage (which) will then guide the DFS, which will include sufficient resource definition drilling to upgrade the first two to three years of resource under an anticipated life of mine plan into the measured category,” it said.

Treadstone Partners acted as strategic and financial adviser to Gold Road, while Corrs Chambers Westgarth acted as legal adviser.

Argonaut and Macquarie Capital acted as joint lead managers to the placement.

Gold Road recently appointed GR Engineering Services to undertake the PFS process and mining studies at Gruyere, and appointed AMC Consultants as the mining consultants to carry out open pit optimisation, design, planning and scheduling, and ore reserve declaration.

Gold Road shares were 7.6 per cent lower at 42 cents each at 12pm.