St Barbara raises $73m to fast-track Simberi sulphide production

Australian gold miner St Barbara (ASX: SBM) is raising up to A$110 million ($73m) to fast-track the expansion of its Simberi operation in Papua New Guinea, with a view of achieving first production from sulphides within five months.The funding will comprise a A$100 million placement with institutional and sophisticated investors, under which the company will issue 263 million new shares at A$0.38 per share in two tranches. It is also set to receive a maximum of A$10 million from eligible shareholders participating in the new share purchase.The offer price represents a 17.4% discount to the closing price of St Barbara’s ASX-listed shares on Oct. 1, 2024, and an 18% discount to the 5-day volume weighted average trading price. The stock was down 26.1% to A$0.34 apiece by market close Tuesday, giving the company a market capitalization of A$278.2 million ($200.8m).Tranche 1 of the placement is expected to settle on Nov. 11 for total proceeds of A$33 million. Tranche 2, which is subject to shareholder approval, is expected to settle on Dec. 18 for total proceeds of A$67 million.The funds, says St. Barbara, will be applied to key areas of the Simberi sulphide expansion project, which include a new larger ball mill circuit, an expanded wharf for concentrate vessels, and a new ROM (run of mine) pad and sizer installation. These items are expected to cost A$58 million, A$33 million and A$23 million respectively.“The work we’ve been doing on the Simberi sulphide expansion project continues to highlight a very attractive project opportunity, and it makes sense to move quickly, especially in the current gold price environment,” commented St Barbara’s managing director and CEO Andrew Strelein.“Raising these funds now allows the project team to advance development, which is anticipated to accelerate first production from Simberi sulphide by up to five months,” he added.The expansion, which will involve the processing of sulphide mineralization contained below the existing oxide pits, is expected to extend to Simberi operation by at least 10 years and roughly triple its annual gold production from the current 65,000-75,000 oz. level to 230,000 oz. through 2034.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com