Millennium Minerals (ASX: MOY) plans to raise 2.7 million to advance its Nullagine gold project in the East Pilbara region of Western Australia to development.
The company placed 60,777,590 shares to sophisticated investors through a private placement at 4.5 cents per share, raising the sum of $2,734,992.
Millenium owns the 630km2 Nullagine gold project in the Eastern Pilbara Province of Western Australia. The gold project has been the subject of an updated feasibility study, the results of which were announced to the market on 19 October 2009.
It also advised that it had resolved to proceed with a pro rata non‐renounceable Rights Issue of one (1) for every four (4) shares held at the issue price of 4.5 cents per share, being the same price as the placement completed today through the lead manager BGF Equities.
The intended Rights Issue is expected to result in the issue of 116,490,381 new shares in the company and will raise an estimated $5,242,067 if the issue is fully subscribed.
Funds raised by the private placement and the intended Rights Issue will be applied towards going ahead with budgeted exploration drilling at the Nullagine gold project to test the potential for depth and strike extensions to existing deposits and to convert additional Inferred resources to the Indicated category.
The company will also undertake first pass drill evaluation of the large adjacent Golden Eagle south west prospect to assess the resource potential and heap leach amenability; establishing a contractual base for engineering and construction of the process plant and infrastructure; tendering mining equipment, drill and blast, camp catering and reagent supply contracts; recruitment and working capital purposes.