Gold mine developer Chaarat (LON:CGH) has raised US$5mln through a placing with Fasnara Capital at 15p, a 28% premium to yesterday’s share price.
The money will fund Chaarat into the first quarter of 2016 and pay for work required to secure construction permits for its flagship Chaarat Gold project.
This programme will follow completion of a Definitive Feasibility Study (DFS), which is due mid-2015.
After that, Chaarat will choose a builder for a stage one heap leach project which, together with the completion of the DFS and permitting, should put the company in a strong position to raise the necessary project finance, it said.
Following the placing, Fasnara’s stake will rise to 25.9% from 19.6% not including warrants attached to the placing shares, If exercised, these would take its stake to 31.3%.
In addition, Chaarat said it had raised US$1.34mln from sales of surplus equipment.
Dekel Golan, Chaarat’s chief executive said: "I welcome the involvement of Fasanara Capital, which has been a supportive shareholder for the last three years.
"This injection of capital into the company means our next significant fund raise should be for construction of the stage one heap leach operation of the Chaarat Project, at which point it will be much more advanced.”