2 weeks Ago By Sean Smith
Capricorn Metals is raising $200 million from investors to fund a dual development program that will set up the gold miner as a long-life producer. The WA producer went into a trading halt early Wednesday before unveiling a placement at $6 a share, a 4.9 per cent discount to Tuesday’s closing price, to fund its expansion of the Karlawinda gold mine and help build a proposed new mine at Mt Gibson.
Capricorn said the projects would be fully funded after the equity raising, with the remaining development costs to be met from existing debt and future cashflow from Karlawinda. The $120m expansion of Karlawinda, 65km south-east of Newman in the Pilbara, was only approved by the company’s board earlier in the week. It will expand production at the mine to 150,000 ounces a year once construction is completed in mid-2026.
Acquired three years ago, the Mt Gibson project is progressing through the permitting process while preliminary works get underway. Capricorn expects it to spend $300m to bring it into production. When fully operation, it will turn out up to 155,000 ounces a year.
More to come Neale Prior Neale Prior and Simone Grogan.
