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Wednesday 22nd July 2009 |
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OceanaGold Corp., operator of the Macraes gold mine near Dunedin, raised A$24.2 million selling ASX-listed chess depositary receipts to fund ongoing exploration and strengthen its balance sheet.
The mining company sold 24.2 million of the CDIs at A$1 apiece, an 11% discount to their average trading price in the previous five trading days.
The funds raised will allow OceanaGold to “immediately mobilize our brownfields exploration program in the vicinity of our existing mines in New Zealand,” potentially extending the life of its operations at Macraes and Reefton, said acting chief executive Marcus Engelbrecht. The company will also be able to complete studies of its Didipio gold-copper project, he said.
The company’s shares have surged some 258% on the NZX in the past six months as it prepares to set a record year in gold production, and has profited from higher gold prices. Gold futures for August delivery fell 90 cents to US$947.90 an ounce on the New York Mercantile Exchange overnight.
The trading halt on its CDIs and New Zealand-listed ordinary shares was lifted. The New Zealand shares fell 2.8% to $1.41 when they resumed trading today.
Macquarie Capital was lead manager and bookrunner for the placement.
The company is due to report its annual profit on July 30.
Businesswire.co.nz
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