Paramount raises $3m to fund Gunung Rosa gold project
Tuesday, August 27 2013 - 02:51 AM WIB
ASX-listed Paramount Mining Corporation Limited said it has secured a $3 million funding facility with exisiting long-term shareholders and senior management to help finance the development of its Gunung Rosa gold project in Indonesia.
Details of the equity facility is stated in the following company statement received on Tuesday.
The terms of the equity facility provide that, at the company?s option, the company can issue shares up to a total value of $3 million by drawdowns of up to $1 million in a calendar month, commencing from August 2013.
Shares issued under the facility will be priced at the lower of 5 cents per share or the Volume Weighted Average Price (VWAP) for the 20 trading days immediately prior to the company?s 2013 Annual General Meeting (subject to shareholder approval).
Commenting on the facility, CEO and Managing Director, Terry Holohan, stated: ?Paramount?s board is very pleased to have secured this facility. At a time of particularly difficult funding conditions, it will give the Company the flexibility and ability to maintain the momentum on the early development of our Gunung Rosa gold mine. With the proceeds we will be able to comfortably finalise our planned in-fill diamond drilling program, complete our metallurgical flow-sheet design work, update our engineering studies accordingly and commence the refurbishment of the underground workings over the next few months.?
The Gunung Rosa gold mine, silver and base metals project, which is located 125 kilometres south-east of Jakarta, is presently the flagship project for Paramount in which the company holds a 72.25 percent equity interest.
Editing by Reiner Simanjuntak