BURGEONING gold producer Doray Minerals will accelerate test drilling at its high grade Andy Well project in WA’s Murchison Region, following the completion of a $17 million fundraising placement.
The placement, totalling 21 million fully paid ordinary shares at $0.80 per share, was made available to investors in late January, following promising results from the Suzi and Judy zones within Andy Well.
According to Doray reports, the share placement was “heavily oversubscribed”, with the issue price representing a 6 per cent discount from the company’s 10 day volume-weighted average price.
Doray’s latest reverse circulation drill results indicated a high grade norther mineral extension in the Suzie zone, with 0.5m at 59 grams per tonne of gold within a wider interval of 3.6m at 8.8g/t of gold. The intersection lies 1km north of existing drilling and 135m below surface.
Funds from the share placement will primarily be used to advance both the Suzie and Judy zones, and to complete first-pass drilling at the Margaret and Kirsty structures.
Doray managing director Allan Kelly said the capital raising would allow the company to advance near term Andy Well exploration and to take advantage of competitive drilling rates on offer in the current market environment.
“We have some very high quality near-mine exploration targets within the Andy Well project that we are looking forward to testing over the upcoming months, and we believethat accelerating the drilling program at Andy Well could provide a significant positive return for shareholders in the near term,” Mr Kelly said.
“This capital raising will give us the ability to rapidly advance a number of these targets with the aim of adding to the project mine life in the near term whilst maintaining the aggressive debt repayment schedule which should see the company pay off the $55 million project finance facility by 30 September 2014.”
Doray is one of Australia’s newest high grade gold producers, following its first gold pour at Andy Well in August 2013. It was the Murchison region’s first new mining operation for more than a decade.