Beadell Resources is set to raise funds through a share placement to fund the ongoing mill expansion at the Tucano project, in Brazil.


Image: A gold mineral. Photo: courtesy of carlos aguilar/

The company announced that it has received commitments and indications to raise approximately A$11.8m ($8.7m) through the placement of approximately 218.3 million fully paid ordinary shares (Shares) to international institutional and sophisticated investors (Placement).

The fund raising allows Beadell to retain its current long-term debt structure, while fully funding the ongoing mill expansion, expected to be completed by November 2018 as advised in the June 2018 Quarterly Report on 31 July 2018.

Beadell’s CEO & Managing Director Nicole Adshead-Bell said: “We are pleased to have the continued support of a number of international institutional investors, including our major shareholders. This financing enables the Company to remain focused on the core goal of improving the financial performance of Tucano. This will, in turn, provide the platform to advance our exploration effort, with the primary aim of defining the magnitude of multiple in-mine and near-mine gold discoveries that are not in a resource category.”

Funds raised pursuant to the Placement will be used for the following purposes:

  • Completion of the Tucano plant upgrade
  • Working capital
  • General corporate purposes
  • 30% of net proceeds will be applied to the outstanding loan to MACA Limited as per the terms and conditions of the loan agreement announced on 22 June 2018

CIBC Capital Markets and Cormark Securities Inc. acted as Co-Lead Agents to the Placement.

The Placement is expected to close on or about Tuesday, 14 August 2018. The Placement is being undertaken at an issue price of A$0.054 per new Share and will be made within Beadell’s placement capacity under ASX listing rule 7.1.

Source: Company Press Release