Australian gold company Cortona Resources Limited announced last week Capital Raising of $10.3m to advance it's exploration project at Dargues Reef, near Majors Creek, towards production. The funds raised will underpin a feasibility study and expanded exploration.
A Definitive Feasibility Study (DFS) on the Dargues Reef Main Lode, will build on the recently completed positive Scoping Study, which indicated that a potential underground mine development at Dargues Reef would be robust and viable, delivering production of 40-50,000 ounces per annum.
The funds will also be used to ramp-up exploration drilling at Dargues Reef and to target a series of priority exploration prospects within "the shadow of the headframe" at Majors Creek, where the Company has a 700km2 tenement position.
Cortona will raise $10.3 million before costs through the issue of 68,845,194 shares at $0.15, with a one-for-two attaching $0.20 Option for a total of 34,422,597 Options expiring 31 January 2012.
This initial mine development would deliver an estimated A$68.4 million pre tax profit over the initial 4.5 year life, generating an Internal Rate of Return of 68% using a A$1,150/ounce gold price.
Cortona has already assembled many of the key personnel and teams to advance the DFS, including Operations Manager and Mining Engineer Ajanth ('AJ') Saverimutto, who will be responsible for the overall management of the Dargues Reef DFS; Geology and Environmental, R.W. Corkery & Co. Pty Limited to provide geological and environmental consulting services for the quarrying, mining, construction and waste industries;
Runge Ltd will provide consulting services and technology products to the global mining industry; Independent Metallurgical Operations Pty Ltd (IMO) which carries out all processing aspects in the development of Australian and international mining projects covering a wide range of commodities.
David Tucker of Responsible Resources Pty Ltd will assist Cortona in securing the necessary licences and approvals required to construct and operate a new mine in NSW.
Cortona expects the Definitive Feasibility Study will take approximately 10 months to complete and the Company is aiming to be in a position to commence gold production by the middle of 2011.
"This is a pivotal time for Cortona, with the capital raising securing the Company's exploration and development pathway over the next 12 months," said Cortona's Managing Director, Peter van der Borgh.
"We are pleased to have secured a major international gold fund as a cornerstone investor in this raising, which also provides all existing shareholders with the opportunity to participate at an attractive price and increase their holdings in the Company ahead of the value-adding activities planned over the coming months" said Mr van der Borgh.
Email a friend