ID :
176165
Mon, 04/18/2011 - 14:07
Auther :
Shortlink :
http://m.oananews.org//node/176165
The shortlink copeid
Focus Minerals $32m placement overbought
Gold miner Focus Minerals Ltd says a $32.3 million share placement to fund an increase in production has been strongly supported by institutional and sophisticated investors.
The placement, involving the issue of 425 million new shares at 7.6 cents per share was heavily oversubscribed.
An accompanying share purchase plan to raise a further $7 million closed last week and was also strongly supported.
Focus said on Monday the $40 million equity raising would allow it to increase production at its operations in Western Australia's Goldfields region by about 30 per cent to 130,000 ounces per annum in calendar 2012 and fast-track exploration programs in the same area.
"We will deliver 100,000oz in this calendar year with much of that weighted to the second half as we bring two new mines into full production," chief executive Campbell Baird said.
Shares in Focus closed down 0.1 cents at 8.5 cents on Monday.
The placement, involving the issue of 425 million new shares at 7.6 cents per share was heavily oversubscribed.
An accompanying share purchase plan to raise a further $7 million closed last week and was also strongly supported.
Focus said on Monday the $40 million equity raising would allow it to increase production at its operations in Western Australia's Goldfields region by about 30 per cent to 130,000 ounces per annum in calendar 2012 and fast-track exploration programs in the same area.
"We will deliver 100,000oz in this calendar year with much of that weighted to the second half as we bring two new mines into full production," chief executive Campbell Baird said.
Shares in Focus closed down 0.1 cents at 8.5 cents on Monday.
