Kaiser Reef Ltd (ASX:KAU) is boosting its last stage production plan for the A1 gold mine in Victoria, plugging $8 million worth of funding into it through a Placement managed by Taurus Capital Pty Ltd, with shares priced at 15 cents each.
The company received firm commitments for the Placement, with the proceeds going towards completion of the A1 ramp up and expansion, recommencement of drilling there, and drilling at Maldon goldfield – also in Victoria.
A key focus of the expansion is the Nova Zone; a critical target which was reached by Kaiser Reef earlier this year. That was originally reported in October.
The development of a mine here is expected to increase high-grade gold production in particular, transitioning the company’s operation built around remnant gold mining.
Nova – which is located underneath the remnant mine workings of A1 – has been developed to the tune of $24 million so far, with this involving significant power, fleet and ventilation upgrades.
The Placement will be organised in two tranches: With the issuing of 44,166,666 Placement shares in the first tranche and 9,500,000 Placement shares (3,500,000 to participating directors, and 6,000,000 to sophisticated and professional investors) in the second.
Kaiser Reef‘s shares rose on the news and at 14:36 AEDT they were trading at 20 cents – a rise of 14.29% since the market opened, on a day when gold itself has been rallying (up 32% in the year to date).
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