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Aurora mine raises C’dn$130M for expansion -company targets 75,000 ounces for first half
Canadian-owned Guyana Goldfields Inc. announced yesterday that strong demand in the industry has forced it to increase the size of its previously announced public offering to C’dn$130 million.
The net proceeds of the offering are expected to be used to fund an expansion of the Aurora Gold Mine, in Region Seven. It will in effect increase capacity from 5,000 tonnes per day to 8,000 tonnes per day, with such expansion to be completed in 2017.
The monies will be used for expanded exploration activities, potential debt repayment, and for general corporate purposes.
“The exploration activities will focus on infill drilling at the Aurora Mine targeting near-surface inferred resources and increasing drill density at Aleck Hill, and in addition, will include drill-ready targets within a 30 km radius of the Aurora Mine and on the Aranka concession,” the company said yesterday.
Guyana Goldfields has revised its production target upwards
The Aurora mine is estimated to declare by this month-end, approximately 75,000 ounces.
“As such, the company is increasing its 2016 production guidance to between 140,000 and 160,000 ounces (from prior guidance of 130,000 to 150,000 ounces). The primary contributors to the revised guidance are increased throughput levels and higher grade than originally predicted in the mine plan.”
The stocks of the company has been closely watched. Recent, in the wake of Britain’s vote to leave the European Union, gold prices have marched to more than US$1,300 per ounce.
Explaining the financing, the company said that it has entered an agreement with a syndicate of underwriters led by BMO Capital Markets, Scotiabank and RBC Capital Markets under which the underwriters have agreed to buy on a bought deal basis by way of a short form prospectus, 12,830,000 common shares from the company and 1,000,000 Common Shares from Patrick Sheridan, the founder and Executive Chairman.
According to Guyana Goldfield, its cash cost (before royalty) remains unchanged at US$487 to US$537 per ounce of gold while all-in sustaining cost (AISC) guidance for 2016 has been increased from US$637 to US$687 per ounce to US$670 to US$720 per ounce.
“The increase is mainly attributable to the unbudgeted purchase of a used Twin Otter airplane for more efficient and flexible local transportation and supplies, and capital expenditures for various plant facility optimization and infrastructure improvement projects.”
Guyana Goldfields Inc. is a Canada-based mid-tier gold producer primarily focused on the exploration, development and operation of gold deposits in Guyana.
Along, with Aussie-owned, Troy Resources, it is one of the bigger producers.
The 100%-owned Aurora Gold Mine began commercial production January 1, 2016 and has a total gold resource of 6.54 million ounces in the measure.
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