Kingsrose set to ramp up production in Sumatra gold project after raising A$15.3m
Monday, July 15 2013 - 01:33 AM WIB
ASX-listed Kingsrose Mining Limited said that it has raised A$15.3 million in a strongly supported share placement to domestic and international institutional and sophisticated investors.
The company said in a statement obtained Monday the placement means Kingsrose is now fully-funded to undertake development and production ramp-up at its Talang Santo gold-silver mine in Sumatra. The proceeds will also help fund infill and resource extension drilling at Talang Santo.
It further explained that ore stockpiles at Talang Santo are being accumulated now and the company aims to be producing gold from the mill by October this year, ramping-up production to the rate of 35,0000z pa by the start of 2014 and to 50,000oz pa by the end of 2014. All-in costs are forecast to be about A$650/oz by the September quarter of 2014.
Kingsrose Interim Managing Director Tim Spencer said the raising ensured Kingsrose could reach production and cashflow quickly while also undertaking a drilling program to grow the resource inventory.
?Like the Way Linggo mine, Talang Santo stands to enjoy some of the lowest costs and most robust margins in the gold mining industry,? Spencer said. ?With such a strong outlook, we wanted to ensure that the company had funding certainty and the shortest possible timeline to production and cashflow.?
Editing by Reiner Simanjuntak