Doray Minerals’ flagship deflector mine. Image: Doray Minerals.
BY CAMERON DRUMMOND
GOLD producer Doray Minerals has tapped investors for $25m to reduce debt, accelerate exploration, and fast track underground development at the Deflector copper-gold project.
Doray will undertake resource definition drilling at Da Vinci north of the current Deflector mining operation. If successful, the company will have the funds to complete capital development for underground access to Da Vinci to boost total production.
At the end of 2017, Doray had $47.5m in debt and $23.9m in cash and metals.
The company will use $14m from the placement, and $4.5m in existing cash to reduce its gross debt balance to $29m.
Doray managing director Leigh Junk said the company had worked tirelessly to turn the company around over the last 14 months, and was pleased with investor response to the capital raising.
“We have been fortunate to have the support of some very loyal shareholders during this turnaround and we appreciate the contribution they have made to the company,” Mr Junk said.
“The Deflector production ramp up is now complete and the operation is running at a steady state.
“The funds raised will provide a strengthened balance sheet giving us the flexibility to expedite our growth plans.”