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Gold Road Resources raises A$43.1M from oversubscribed placement

said April 29that it has completed a previously announced placement and the institutional componentof its 1-for-10 accelerated nonrenounceable pro-rata entitlement offering, raisinga total of A$56.6 million.

Just a few daysearlier, the company said it was planningto raise A$74 million, through the share placement and the entitlementoffering, to fund the development of the Gruyere gold project, which forms partof its Yamarna projectin Western Australia.

The oversubscribedplacement saw the issuance of 98.1 million Gold Road shares at 44 Australian centsapiece, totaling A$43.1 million, while the institutional entitlement offering —at the same price as the share placement — fetched about A$13.5 million, with thecompany's existing institutional shareholders taking up approximately 89% of theirentitlements.

Meanwhile, theretail component of the entitlement offering is set to open May 3 and close May16. Like the institutional component of the financing, eligible retail shareholdersmay subscribe for one new Gold Road share for every 10 shares held at 44 cents pernew share.

Gold Road expectsto raise about A$17.4 million through the retail entitlement offering.

Following thecompletion of the financing, the miner will have about A$103 million on hand andwill be fully funded to complete the feasibility study on the Gruyere gold project,which is targeted to be completed by the end of the year for an investment decisionto be made in early 2017.

The proceedswill also allow Gold Road to purchase long lead time capital items for the project,start early works, front-end engineering and design, and ensure the company's flexibilityto fund possible drilling of Gruyere's open pit depth extensions as well as regionalexploration programs.