Gascoyne Resources Ltd (ASX:GCY) has raised $1.66 million in a share purchase plan (SPP), part of the $16.66 million capital raise to advance its Dalgaranga Gold Project in Western Australia.
As per the SPP, the new shares are expected to be issued today and will begin trading on the ASX on Tuesday.
The SPP accompanies Gascoyne’s recently completed $15 million placement to institutional, professional and sophisticated investors at an issue price of $0.30 per share.
"Progress growth initiatives"
Commenting on the SPP, Gascoyne managing director Simon Lawson said: “The combined proceeds of the share placement and share purchase plan provide the company with a very strong cash position from which to progress our growth initiatives at Dalgaranga.
“Gascoyne is now debt free, with rising gold production, no hedging and an outstanding near-mine and regional exploration pipeline that offers shareholders an exceptional growth outlook.
“I would like to sincerely thank all shareholders that participated in the capital raising and welcome our new investors to the register.”
Use of funds
Following the retirement in full of the remaining $10 million convertible debt on March 31, proceeds from the combined raise will be applied towards ongoing exploration and resource development drilling at the Dalgaranga Gold Project.
Gascoyne will also pursue the recently discovered Gilbey’s North deposit located only 1 kilometre away from the process plant.