The proceeds will enable the company to continue to transform from an exploration firm into a gold producer, as it remains on track to bring the New Luika Gold Mine in Tanzania into production in December 2011.
Furthermore, the company will be able to finance the initial exploration activities in the Lupa Goldfield in the southwest-central Tanzania to meet a JV agreement with Great Basin Gold announced on 1 June 2011.
The New Luika Gold Mine aims to produce 175,000 – 190,000 ounces over the first three years at an average grade of 3.5/3.8Au grams per tonne at an average cost of $560 to $610 per ounce from December 2011.
