Vancouver -Coming off strong drill results that expanded mineralization at its Haile project, Romarco Minerals (R-V) is raising $30 million through a bought-deal financing.
Paradigm Capital is the lead underwriter and along with GMP Securities, Macquarie Capital Markets Canada and Wellington Capital Markets it has agreed to buy 34.1 million Romarco shares at 88¢.
Romarco is also giving the underwriters the option to buy up to 15% more shares to cover over allotments within 30 days of the financing’s close which Romarco expects to occur Aug. 13. If fully exercised proceeds of the bought deal would come in at $34.5 million.
Romarco says the proceeds will fund development of its Haile project including purchases of adjacent properties and further drilling.
In a feasibility study Romarco envisaged the Haile project, north of Columbia, South Carolina, as a 7,000-tonne open pit mine producing about 128,000 oz. gold a year.
So far Romarco has outlined measured and indicated resources of 27.8 million tonnes grading 1.81 grams gold, though the project has potential for expansion. Recently Romarco stepped out to the north of the Snake Pit, one of three proposed pits at Haile, and drilled 34 metres grading 5.3 grams gold per tonne starting 248 metres downhole.
On news of the bought deal Romarco’s share price gained 2¢ to close at 89¢. Romarco has about 273.2 million shares outstanding.
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