Aurelia Metals Limited has received an “overwhelmingly positive response” to its capital raising activities to fund the purchase of Peak Gold Mines.
The company, which owns Nymagee’s Hera Mine, announced the acquisition of New Gold’s Peak Gold Mines in November last year.
Since then Aurelia’s institutional and major shareholder placements and a Share Purchase Plan have raised total equity of $89million.
The capital raising activities comprised of a two-tranche placement to qualified investors plus new shares to Aurelia’s existing major shareholder, Pacific Road.
A second major Aurelia shareholder, Glencore also received new shares.
Post completion of the capital raisings, Pacific Road’s equity interest in Aurelia will be approximately 36.6 per cent, while Glencore’s interest is 5.5 per cent.
The share placements were approved by shareholders at a general meeting held on January 5.
Aurelia’s managing director and CEO Jim Simpson said the institutional placement was heavily oversubscribed and strongly supported by both existing shareholders and new investors.
“We are very pleased with the response from investors to the placement which shows strong support for our growth strategy and the acquisition of the Peak Mines,” he said.
The sale process is expected to be completed within the first quarter of 2018.