Join our daily newsletter At The Bell to receive exclusive market insights
- Gascoyne Resources (GCY) has placed its shares in a trading halt regarding an upcoming capital raise
- The materials stock recently halved its debt with a major shareholder on the back of strong gold production as it focused on maintaining a strong balance sheet
- Gascoyne is also preparing to recommence drilling at the Gilbey’s North discovery within its Dalgaranga project
- The gold explorer hasn’t provided any details on the capital raise but these are expected to be revealed by the time the trading halt ends on March 28
- Shares last traded at 35.5 cents on March 23
Gascoyne Resources (GCY) has placed its shares in a trading halt pending an announcement on an upcoming capital raise.
The materials stock hasn’t disclosed any details, such as how much it plans to raise or how it will spend the funds, just that the trading halt will allow it to consider, plan and execute potential fresh funding.
Last week, the gold exploration company announced it would slash its debt with a major shareholder by half on the back of strong gold production.
Gascoyne repaid Deutsche Balaton AG $10 million of its $20 million convertible note facility — a deal which was entered in mid-December 2021.
The company claimed the payment will save it around $3.1 million in interest over the next 21 months.
Gascoyne Resources also recently announced some shallow high-grade gold results from the Gilbey’s North discovery within its wholly-owned Dalgaranga project in WA’s Murchison region.
The company said it was planning to recommence drilling in the area on April 1 to target extensions to Gilbey’s North as well as drill test some other targets across the project.
At the time of that announcement, Managing Director and CEO Simon Lawson said the company was focused on maintaining a strong balance sheet and unlocking value for shareholders.
“We continue to focus on costs and minimising debt, and we will see further benefit to our balance sheet as we move to unlock some of the unrealised value in our non-Murchison assets in the coming weeks,” he said.
“It really feels like the company has turned a major corner in the last few months and we intend to continue to work hard to deliver meaningful outcomes for our shareholders.”
Gascoyne expects to come out of the trading halt on Monday, March 28, by which time the details of a capital raise would have been released.
Shares last traded at 35.5 cents on March 23.
