The company will raise the funds through an underwritten non-renounceable rights issue comprising two new chess depository interests for every five CDIs held on the record date. It involves issue of up to 117.8 million new CDIs to bring in approximately $20m.
The move follows the award of the final forestry permit allowing the company to commence the construction. It is due to start in latter half of 2013, while it expects to achieve producer status in 2014.
Meanwhile, the first stage of production is estimated to produce 30,000 ounces gold and 200,000oz silver per annum with 400,000 tonnes per annum capacity.
Second stage is aimed at increasing Tembang’s throughput to 900,000tons per annum and production to 50,000 ounces of gold and 500,000 ounces of silver each year. It plans to fund the second stage operations through its cash flow.
It has scheduled the ramp-up program for 12 month period and the project currently has a 7.5 year mine life based on resource inventory.
