11th Jul 2014 08:24
LONDON (Alliance News) - Greatland Gold PLC Friday said it has raised GBP500,000 through a placing of 153.8 million shares at a price of 0.325 pence per share.
Greatland Gold shares were down 9.9% to 0.410 pence, making it the second biggest faller during early trading on AIM Friday.
The mineral exploration and development company focused on gold projects in Tasmania and Western Australia said the funds raised would provide additional working capital for the company.
"This placing will allow us to make further progress on our plans to establish resources across our portfolio of assets," Chief Executive Callum Baxter said in a statement.
During May, the company started drilling at its Firetower gold project in Tasmania and agreed to extend its farm-in joint venture agreement with Unity Mining Ltd.
Under the existing farm-in agreement, Unity Mining will earn up to 75% of the Firetower Gold project for expenditure of AUD7 million over five and a half years. The companies also had in place two milestone whereby Unity could earn an initial 51% of the project.
The first milestone was to spend a minimum of AUD200,000 within 12 months, which was completed, while the second was to spend AUD2 million within 30 months to earn 51%.
Unity advised at the time that it would not achieve the second milestone within the 30 month period, which ended on April 6. The shortfall was approximately AUD600,000. It said this had been due to a combination of impediments, being primarily weather conditions and the time taken to interpret new geophysical data.
A 12 month extension was agreed by both parties for the second milestone. Unity will now have until April 7, 2015 to spend the full AUD2 million.
By Tom McIvor; [email protected]; @TomMcIvor1
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