Coromandel gold miner raises $4.69m in rights issue
New Talisman Gold Mines has raised $4.69 million in a rights issue that the company had hoped would raise up to $12.26 million.
The Coromandel gold prospecting company issued 905,535,515 shares in a 3 for 1 renounceable rights issue at 0.5 cents a share. There was a shortfall of 1,547,632,243 shares and under the listing rules of the NZX and ASX can be placed at the discretion of the board up until Sept. 30.
The shortfall means fewer than half of the shares for sale were bought by investors.
It was the largest rights issue ever undertaken by New Talisman. The money is to be used to initiate a bulk sampling and trial mining programme at the Talisman mine.
Chief executive Matthew Hill said the fundraising would be a catalyst for the company: "The completion of the rights issue cements the company in its transition to developer and allows us to begin the necessary works to bring this historically productive Talisman mine back into production".
In a statement, the company said the mine was expected to yield between 200 to 220 ounces of gold a month at an on mine cost of $900 an ounce, while the current market price of gold is more than $2,000.
Shares in New Talisman had hit a three-year high of 2 cents prior to the announcement of the rights issue in May. They're currently trading at 0.7 cents.