Metals Exploration (LON:MTL) is raising new funds ahead of permitting at its Runruno gold mine in the Philippines.
According to Philippine law, final permits can only be issued following the completion of construction, said chairman Ian Holzberger.
“Unfortunately, in the circumstances the company is unable to forecast with any confidence when the required permits will be issued,” he said.
With Runruno now substantially complete, Metals Ex has thus decided to take the prudent approach and raise a certain amount of money to tide it over.
The company is raising US$5mln through a placing to certain long-term backers of the company, and potentially a further €5mln through an open offer.
It will also secure a US$5mln debt facility.
“Our decision to safeguard Runruno’s development to date by raising additional finance through a mixture of equity and debt has been taken in order to provide us with the funding headroom we believe we need to take us through the permitting approvals process to the start of operations,” said Holzberger.
Runruno contains well over a million ounces of gold, and once up and running is expected to operate for about 10 years.