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.