Gold Road Resources - Completion of Placement and Institutional Entitlement Offer

Gold Road Resources - Completion of Placement and Institutional Entitlement Offer

Gold Road Resources (ASX:GOR) has successfully completed the share placement and institutional component of the 1-for-10 entitlement offer launched on Wednesday, 27 April. The placement and institutional entitlement offer were heavily oversubscribed from both existing and new institutional shareholders, raising $56.6 million at $0.44 per new share. The retail component of the entitlement offer will open on Tuesday, 3 May and is expected to raise a further $17.4 million.


Highlights

  • Total  of  A$56.6  million  raised  through  Institutional  Entitlement  Offer  and  Placement at A$0.44 per New Share  
  • Including A$43.1 million raised in the heavily oversubscribed Placement which was  cornerstoned by three high quality North American investors  
  • Fully underwritten Retail Entitlement Offer to raise approximately A$17.4 million  opens on Tuesday, 3 May 2016  
  • Existing  retail  shareholders  have  opportunity  to  subscribe  for  1  New  Share  for  every 10 shares held at the Record Date at A$0.44 per New Share
  • Post completion of the Offer, Gold Road will have approximately A$103 million(1)  on  hand and  be  fully  funded  to  complete  the  Feasibility  Study,  purchase long lead  capital  items,  commence  early  works  and  FEED  and  ensure  flexibility  to  fund  possible  drilling  of  Gruyere  open  pit  depth  extensions  as  well  as  regional  exploration programs  

Overview

Gold Road Resources Limited (Gold Road or the Company) is pleased to announce the successful completion of  its placement (Placement) and institutional component of its 1 for 10 accelerated non‐renounceable pro‐rata  entitlement offer (Institutional Entitlement Offer) launched on Wednesday, 27 April 2016 (together referred to  as the Equity Raising).  

The  Placement  and  Institutional  Entitlement  Offer  closed  on  Thursday,  28  April  2016  and  was  heavily  oversubscribed from both existing and new institutional shareholders, raising a total of approximately A$56.6  million at A$0.44 per New Share (Offer Price).  

The Placement of approximately 98.1 million shares raised a total of A$43.1 million and has allowed Gold Road  to introduce several new highly respected global institutions including  the  three North American institutional  cornerstones, to the Company’s register, broadening its depth and quality.  

The Institutional Entitlement Offer raised approximately A$13.5 million, and was strongly supported by existing  institutional shareholders, who took up approximately 89% of their entitlements.

(1) Pro forma unaudited cash as at 31 March 2016 plus gross offer proceeds 

New Shares issued under the Institutional Entitlement Offer and Placement will rank equally with existing shares on issue and are expected to be allotted on Monday, 9 May 2016. Trading will commence on a normal settlement basis on the Australian Securities Exchange (ASX) on the same day.

Gold Road’s Executive Chairman Ian Murray said: “We are encouraged by the strong support we have received from both existing and new institutional shareholders, as demonstrated through the high level of participation in the Entitlement Offer and Placement. Further, we are delighted by the enhanced breadth of the share register as a result of the introduction of new, high calibre global institutions, including the three North American cornerstones. Gold Road is now in a strong financial position that enables the Gruyere Project to be de‐risked and de‐bottlenecked through the commencement of early works, FEED and purchase of long lead capital items. We remain focused on completing the Feasibility Study on schedule and look forward to updating the market on the significant progress being made during the current quarter.”

Retail Entitlement Offer

The retail component of the Entitlement Offer seeks to raise approximately A$17.4 million through a 1 for 10  fully underwritten, non‐renounceable pro‐rata entitlement offer (Retail Entitlement Offer) at A$0.44 per New  Share.  

The Retail Entitlement Offer will open on Tuesday, 3 May 2016 and close at 3.00pm (AWST) on Monday,  16 May 2016.  

Eligible retail shareholders on the Record Date of 7.00pm (AWST) on Friday, 29 April 2016, have the opportunity  to  invest  in  New  Shares  at  the  Offer  Price  of  A$0.44.    The  terms  and  conditions  under  which  eligible  retail  shareholders  may  apply  are  outlined  in  the  retail  offer  booklet  (Offer  Booklet)  expected  to  be  lodged  and  despatched to eligible retail shareholders on Tuesday, 3 May 2016.  In deciding whether or not to participate in  the Retail Entitlement Offer, eligible retail shareholders should read the Offer Booklet carefully.  

The Offer Booklet and the accompanying personalised entitlement and acceptance form will contain instructions  on how to apply by the closing date of Monday, 16 May 2016.    

The Retail Entitlement Offer is fully underwritten by Macquarie Capital (Australia) Limited.  

Key dates for the Retail Entitlement Offer are set out below. 

Additional information

Additional information regarding the Equity Raising is contained in the investor presentation released to the ASX  on Wednesday, 27 April 2016.  

Nothing contained in  this announcement constitutes investment, legal,  tax or other advice.  You should seek  appropriate professional advice before making any investment decision.  

Macquarie Capital (Australia) Limited and Argonaut Securities Pty Ltd acted as Joint Lead Managers to the  Equity Raising.  

Treadstone Resource Partners acted as strategic and financial adviser and Corrs Chambers Westgarth acted as  legal adviser to the Company.  

Petra Capital Pty Ltd acted as Co‐Lead Manager.  

Retail shareholders who have questions relating to the Retail Entitlement Offer should contact Gold Road’s  Registrar, Security Transfer Registrars, on +61 08 9315 2333.

To view the full announcement click here. 

NRW joint venture formally awarded Forrestfield Airport Link

NRW joint venture formally awarded Forrestfield Airport Link

Kingsgate  - Quarterly Activities Report for the period ending 31 March 2016

Kingsgate - Quarterly Activities Report for the period ending 31 March 2016