Gold Road to raise $23.2m in placement

Perth-based explorer Gold Road Resources has received commitments for a $23.2 million capital raising, with the company keen to further explore gold targets identified within its tenement holding on the Yamarna Belt.

The 77.3 million new shares will be issued at 30 cents per share to institutional investors, and represent a 12.7 per cent discount to the 30 day volume weighted average price of 34.4 cents.

The raising comes after Gold Road’s $10 million placement in March at 17.5 cents per share, with its share price almost-doubling six months later.

Gold Road’s 5,000 square kilometre Yamarna Belt, located 150 kilometres east of Laverton, includes discoveries made by the company earlier this year.

“The success of this capital raising allows us to build on this recent exploration success and focus on maintaining Gold Road’s primary objective to grow the company’s shareholder value unlocking Yamarna’s gold endowment,” Gold Road executive chairman Ian Murray said.

"Our 2014 maiden 3.8Moz JORC Mineral Resource at Gruyere was achieved as a result of a measured exploration programme undertaken by our highly competent exploration and technical team who delivered ounces at less than A$2 per ounce and within 10 months of the initial discovery," he said.

Argonaut Securities was lead manager and global bookrunner to the capital raising, and Treadstone Partners acted as strategic and financial adviser to Gold Road.

Gold Road shares closed 3.2 per cent lower at 30 cents per share.