- Gold explorer Pacgold (PGO) receives firm commitments to raise $7.8 million via a share placement
- More than 12.34 million shares will be issued to new and existing sophisticated and institutional investors at 63 cents
- Pacgold also intends to undertake an entitlement offer to raise roughly $3.2 million with shares to be priced the same as the placement
- The company will use the money to speed up exploration and drilling activities at the Alice River gold project in north Queensland
- Shares in Pacgold were unchanged at 72 cents
Gold exploration company Pacgold (PGO) has received firm commitments to raise roughly $7.8 million via a share placement.
The company will issue 12,341,562 shares to new and existing sophisticated and institutional investors at 63 cents.
This price represents a 12.5 per cent discount to Pacgold’s last closing price of 72 cents on April 13 and a 12.4 per cent discount to the 15-day volume-weighted average price of 71.9 cents.
Pacgold also intends to undertake an entitlement offer to raise roughly $3.2 million with shares to be priced the same as the placement.
Taylor Collison and Euroz Hartleys will act as joint lead managers to both the placement and entitlement offer.
Subject to the negotiations of commercial terms, Pacgold intends to enter an underwriting agreement with the joint lead managers on or prior to the launch of the entitlement offer.
Pacgold will use the money to speed up exploration and drilling activities at the Alice River gold project in north Queensland. Two rigs are onsite and drilling is set to resume shortly.
“The strong support of the placement by existing shareholders and new investors reflected both the exceptional targeting and drilling success Pacgold has had in its first 12 months at the Alice River gold project and the significant upside identified in the ground
position,” Managing Director Tony Schreck said.
“We are very happy with the level of investor support for the placement, and we are especially pleased with the ongoing support from our shareholders as we embark on the next stage of aggressive exploration at the Alice River gold project.”
Shares in Pacgold were trading in the grey at 72 cents at 3:59 pm AEST.