Gascoyne Resources Ltd. completed a bookbuild to raise about A$21.5 million through an oversubscribed placement at 38 Australian cents per share.
The funds will be used for regional exploration at the Dalgaranga and Glenburgh gold projects in Western Australia, development of the Dalgaranga gold mine, and for additional working capital.
The exploration will focus on extending the mine life at Dalgaranga, expanding the resource base at Dalgaranga and Glenburgh, and targeting new discoveries.
The company said Nov. 22 that it plans to spend about A$6.5 million on exploration during the period to June 30, 2018.
Managing Director Mike Dunbar noted that development at the Dalgaranga project is on track to start production in the first half of 2018.
Gascoyne said it is close to securing a debt facility for Dalgaranga's development, with two tier-one Australian banks mandated to arrange project financing. Agreements are expected to be executed later this month, with first drawdown expected in December.
Meanwhile, the company appointed Ian Kerr to its board as executive director of development.