ASX debutante Coolgardie gets mining underway but it’s still under water
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ASX debutante Coolgardie Minerals has production underway at its 91,900 ounce “Geko” gold project in Western Australia – but investors don’t yet seem impressed.
Coolgardie (ASX:CM1) disappointed in its August ASX debut– opening its first day at a 17.5 per cent discount to its 20c issue price.
It is now trading at about 12c per share.
Coolgardie expects revenue from ore sales to gold miner Northern Star Resources (ASX:NXT) from mid-November.
The deal covers sales of up to 100,000 tonnes of gold ore delivered over six months — supplied at a minimum grade of 2.75 grams per tonne gold.
The deal could generate more than $10 million revenue for the junior miner as it looks to grow into a 100,000 ounce per year producer via organic growth, mergers and acquisitions.
Negotiations are underway for more toll milling agreements with nearby gold treatment facilities, the company said.
During the quarter, the company appointed advisory Noah’s Rule to help secure debt to support development of operations and future growth.
At the end of September the miner held $1.66 million in cash and no debt.