June 2, 2010Citigold is in the final stages of completing an $18 million capital raising to fund growth at its Charters Towers gold project including the Warrior mine.
As announced by the Queensland company this week, the capital raising - through RB Capital group of Singapore and Khandwala Securities of India - will be a combination of debt and equity.
While this is still being finalised, it is expected to be approximately 50 percent debt and 50 percent equity.
“At this stage in the development of the project the Directors feel a term loan facility has become attractive to the Company,” the company said in a statement.
“The joint venture plans to provide funding, skills and a shared goal of profitable gold production,” it said.
According to Citigold’s senior geologists, the overall Charters Towers gold deposits may show in time to be larger than the current inferred mineral resource of 10 million ounces of gold (23 million tonnes at 14 grams per tonne).
Citigold’s mineral tenements at Charters Towers total over 600 square kilometres.
SINGAPORE STOCK LISTINGThe miner says developing such a large project will require capital, extensive drilling and application of the best technology and practices.
“International investor interest in Citigold continues to grow as further evidenced by this next stage funding,” it says.
As a result, the company is considering the possibility of a Singapore stock exchange listing to give international shareholders additional access to trade in CTO securities.
“Singapore is a large and long established, sophisticated financial centre catering to, and easily accessible by, the fast growing Asian economies, especially India and China.
“The Company believes that the above capital raisings, coupled with the joint venture strategy, can produce long term growth to the overall Citigold business."
