- Bardoc Gold (BDC) has received commitments for a $24 million share placement to fast-track exploration at its Bardoc Gold Project in Western Australia
- The funds will also support the ongoing definitive feasibility study for the namesake project
- Additionally, the placement will support drilling programs across a number of exploration targets
- Over 307 million shares will be issued at 7.8 cents each to institutional investors and other professional and sophisticated investors
- Positively, the capital raise will increase Bardoc’s cash reserves to over $35 million
- Company shares are down 2.22 per cent and are trading for 8.8 cents each
Bardoc Gold (BDC) has received commitments to raise $24 million to support the development of its Bardoc Gold Project in Western Australia.
The company will launch a share placement of 307.69 million shares at an issue price of 7.8 cents each to institutional investors and other strategic professional and sophisticated investors.
“These are investors who are willing to follow their money and back us as we make the transition from explorer, to developer, to producer over the next 12 to 18 months,” CEO Robert Ryan said.
Excitingly, the capital raise will increase Bardoc’s cash reserves to over $35 million which positions it well to transition it from an explorer and developer to producer.
The funds will be used to fast-track the ongoing definitive feasibility study (DFS) and mining studies for the 3.02 million-ounce Bardoc Gold Project. The money will also be used for exploration work across the company’s tenements to potentially expand and upgrade the mineral resource.
This project-wide mineral resource update is expected to be completed by the end of the current quarter.
Additionally, the raise will help unlock the value of the Mayday North, North Kanowna Star and Vettersburg (Slug Hill) projects.
“We see this next phase of activity as very much a continuation of the strategy we have been pursuing over the past three years — with the three key elements comprising aggressive exploration to grow our Resource base, selective and value-accretive acquisitions and mergers, and the completion of high-quality development studies to progress the Bardoc Gold Project towards production,” Robert stated.
The 7.8 cents-per-share placement price represents a 13.3 per cent discount to Bardoc’s share closing price on July 3, and a 9.1 per cent discount to the volume-weighted average price compared to the last five trading days.
Shares under the placement are expected to be allocated on or around July 17.
Company shares are down 2.22 per cent and are trading for 8.8 cents each at 12:24 pm AEST.