USD $4,111.97
Goldman Funds to Support Key Projects in Western Australia and Canada
Labyrinth Resources Limited (ASX:LRL) has secured firm commitments to raise $19.5 million (before costs) through a Placement to institutional and sophisticated investors at $0.21 per share.
Genesis Minerals Limited (ASX: GMD, Market Cap: ~$2.5bn) has subscribed for $1.45 million worth of shares in the Placement and is expected to hold approximately 7% of Labyrinth’s total issued shares post-Placement. Proceeds will strengthen Labyrinth’s financial position, with a pro-forma cash balance estimated at $21 million.
The funds raised will be allocated towards:
- Accelerated exploration and drilling at the Comet Vale, Vivien, and Mulwarrie gold projects in Western Australia.
- Potential acquisition of the remaining 49% interest in the Comet Vale project.
- Tenement and holding costs at the Labyrinth Gold Project in Quebec, Canada.
- General working capital and strategic opportunities.
The Placement attracted significant interest from institutional investors domestically and internationally, alongside strong support from existing shareholders. Directors of Labyrinth have committed to subscribing for $0.275 million worth of shares, subject to shareholder approval.
Labyrinth’s CEO, Charles Hughes, said:
We are very pleased with what has been a highly successful capital raising for the Company. The support received from Genesis along with existing, long-term and new Labyrinth shareholders reflects the exciting potential of the Company’s projects.
After completion of the Placement, the Company is expected to hold approximately $21 million in cash, placing us in an excellent position to quickly ramp-up exploration at our WA-focused high-grade gold projects.
