Gold Road ResourcesLtd. said April 27 that it is planning to raise A$74 million to fundthe development of the Gruyere gold project, part of the Yamarna project in Western Australia.
An institutional placement of 98 million new shares will raisearound A$43 million. A 1-for-10 pro rata accelerated nonrenounceable entitlementoffer will raise A$31 million.
Shares are priced at 44 cents apiece.
This equity raising follows the release of a on Gruyere, which showedthat the project can generate over A$1 billion in undiscounted pretax cash flowover an initial 12-year life.
Gold Road aims to complete a feasibility study on Gruyere bythe end of the year, which will allow an investment decision to be made in early2017.
Some A$32 million will be used to purchase long lead time capitalitems for the project, while A$18 million will be set aside for completion of earlyworks and front-end engineering and design.
About A$5 million each is earmarked for exploration for open-pitdepth extension at Gruyere and for continued drilling in the region.
A total of A$14 million will be used for general working capital,corporate expenditure and transaction costs.
The placement and institutional entitlement offer bookbuild willclose April 28, while the entitlement offer is scheduled to close May 16.