Logo of Phnom Penh Post newspaper Phnom Penh Post - Okvau gold project funding to add $51M

Okvau gold project funding to add $51M

Okvau gold project funding to add $51M

Australian-listed mining firm Emerald Resources NL on Monday announced plans to raise A$75 million (US$51 million) in funds for its Mondulkiri-based Okvau gold project with two placements of 1.875 billion new shares.

The first is an unconditional placement for approximately A$30.5 million and the second a conditional placement for A$44.5 million, subject only to shareholder approval.

Financing and the placement itself will cost A$10.3 million, with new shares priced at A$0.04 each.

The proceeds will add to the A$85.6 million in existing debt facility as well as the A$10.7 million in cash in hand, bringing total funding for the project to A$171.3 million.

Emerald Resources has set March 19 as its deadline to complete the placement, with the second tranche to go before shareholders at its March 13 general meeting.

The raising will be led by Euroz Security Limited with Canada-based Sprott Capital Partner acting as co-lead manager for both the tranches.

The first extraction from the Okvau gold mine is expected to take place this year.

The company released its definitive feasibility study in May 2017 and revealed that the project could produce 106,000 ounces of gold per year on average.

It estimated that the mine will initially be active for seven years, with capital investment amounting to A$98 million.

Last week, the Ministry of Mines and Energy called for investors to apply for exploration licences at eight locations in Stung Treng, Kampong Thom, Preah Vihear, Seam Reap and Mondulkiri.

Speaking at the 8th Extractive Industries Governance Forum last year, Minister of Mines and Energy Suy Sem called on companies operating mining projects to ensure that the communities and environment are not affected by related activities.

He said promoting responsible mining and oil sector development in line with the Sustainable Development Goals is the ministry’s policy and main strategy.

MOST VIEWED

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth

  • School reopening can’t wait

    With the Covid-19 pandemic now well into its second year, safely reopening schools has become an urgent priority. School attendance is critical for children’s education and lifetime prospects. The long-term costs of closures – both for individual children and society – are simply too large to

  • Kingdom set to be a gold producer

    Cambodia will soon join the roster of gold producing countries after the government announced the commencement of commercial gold mining operations in the Okvau area in southwestern Mondulkiri province's Keo Seima district from June 21. Prime Minister Hun Sen on June 10 announced that after 14 years of