Central Asia Resources (ASX: CVR) has received a major vote of confidence in the company's pending gold processing operations, and has received placement commitments to raise around A$2 million from professional and sophisticated investors.
The placement will comprise 80 million shares at $0.025, and will be completed under the company's placement capacity.
The company's Dalabai mine in Kazakhstan is set to benefit from the capital injection, with the funds used to ramp up gold processing. Additional exploration will also be undertaken at the Bizhe and Altyntas projects.
Guy Warwick, chairman, said that everything was in place at Dalabai. “The moment we get cooperative conditions we'll start processing.”
Dalabai has promising economics
Dalabai which is forecast to be processing gold within months, has a forecast pour rate of 15,000 gold ounces per year.
Central Asia has also identified significant exploration upside to increase production, which currently has metrics of an average 25,000 gold ounces and 550,000 silver ounces for a 2.7 year period.
At Altyntas the company is preparing for development (heap leach) in 2013 with the project already hosting close to 600,000 gold ounces, while Bizhe is only in the early exploration phase.
Further placement details
The $1 million contribution from major shareholders Re-Resources & Energies SA ($700,000) and Hillbrow Investments Limited ($300,000), which was announced earlier in the month, will be converted to shares at $0.025 as part of the placement.
Central Asia will then seek approval at a general meeting (date yet announced) to allow the director and related parties to participate in the placement in the amount of $300,000.