G-Resources to raise $1.6 billion for N. Sumatra gold project

Hongkong-listed firm G-Resources Ltd has entered Wednesday into placement agreement with Morgan Stanley & Co. International plc, Kingston Securities Limited and Essence International Securities (Hong Kong) Limited to raise HK$1.66 billion.

G-Resources issues 2,813,364,000 new shares at a price of HK$0.60 per Share.

The company intends to utilise the net proceeds for the purpose of capital expenditure on its Martabe gold project in North Sumatra.

The company?s Martabe Ore Reserves as at this date are estimated to contain 3.03 million ounces of gold and 33.63 million ounces of silver, contained within the Pit 1, Barani and Ramba Joring deposits at the Martabe project site in North Sumatra.

The new statement shows an increase in G-Resources? Group Ore Reserves with gold up by 315,000 ounces (11.6% increase), and silver up by 810,000 ounces (2.5% increase) due to the addition of the Ramba Joring Ore Reserves.

The updated Martabe Ore Reserve estimate contains 45.5 million tonnes of ore, an increase of 6.0 million tonnes (15% increase) from the previous Martabe Ore Reserve statement. The average grade of the updated Martabe Ore Reserve is 2.1 g/t gold and 23.0 g/t silver. (romel)