Gateway Mining adds $2m share purchase plan to successful $7m placement
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Special Report: Shareholders in Gateway Mining have been offered the chance to join in a $2m capital raising on the same terms as sophisticated investors in a recent $7m share placement.
Gateway Mining (ASX:GML) shareholders will be able to subscribe to up to $30,000 worth of new shares at a price of 1.6c per share, under the company’s non-underwritten share purchase plan, subject to shareholder approval.
The share offer follows Gateway’s $7m placement, comprising the issue of 437.5 million shares at 1.6 cents each, to institutional and professional investors in late-July.
“We are pleased to be able to provide the opportunity for existing shareholders to participate in our recent highly successful $7m capital raising on the same terms as professional and sophisticated investors,” managing director Peter Langworthy said.
The offer price of 1.6c per share represents a 16 per cent discount to Gateway’s five-day volume-weighted average share price prior to July 13.
This price is the same as that offered to institutional, professional and sophisticated investors in the company’s July 20 share placement.
The cash raised will be used to fund a drilling and exploration program at Gateway’s Gidgee gold project in WA’s Murchison gold region.
“The funds raised will further strengthen our balance sheet, allowing us to continue with our systematic and focused approach to exploring the Gidgee gold project with a view to further expanding our gold resource inventory and making new discoveries,” Langworthy said.
The Gidgee gold project is an emerging large-scale gold system in the heart of WA’s mineral-rich Murchison and Northern Goldfields.
Five shallow open pits were mined here between 1988 and 1992, producing about 150,000oz back when the gold price languished at around $500/oz
The Gidgee gold project covers 1000sqkm of the southern extension of the Gum Creek Greenstone Belt and the Gidgee region has historically produced 1.5 million ounces of gold.
Drilling has started at the Gidgee project, including the follow up of high-grade gold intersections of 21m at 2.1 grams per tonne (g/t) of gold from 32m and 2m at 24.6g/t gold from 4m.
This article was developed in collaboration with Gateway Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.