Do­ray raises $25m

The Australian Mining Review - - NEWS - CAMERON DRUM­MOND

GOLD pro­ducer Do­ray Min­er­als has tapped in­vestors for $25 mil­lion to re­duce debt, ac­cel­er­ate ex­plo­ration, and fast track un­der­ground de­vel­op­ment at the De­flec­tor cop­per-gold project.

Do­ray will un­der­take re­source def­i­ni­tion drilling at Da Vinci north of the cur­rent De­flec­tor min­ing op­er­a­tion. If suc­cess­ful, the com­pany will have the funds to com­plete cap­i­tal de­vel­op­ment for un­der­ground ac­cess to Da Vinci to boost to­tal pro­duc­tion.

At the end of 2017, Do­ray had $47.5m in debt and $23.9m in cash and met­als.

The com­pany will use $14m from the place­ment, and $4.5m in ex­ist­ing cash to re­duce its gross debt bal­ance to $29m.

Do­ray man­ag­ing di­rec­tor Leigh Junk said the com­pany had worked tire­lessly to turn the com­pany around over the last 14 months, and was pleased with in­vestor re­sponse to the cap­i­tal rais­ing.

“We have been for­tu­nate to have the sup­port of some very loyal share­hold­ers dur­ing this turn­around and we ap­pre­ci­ate the con­tri­bu­tion they have made to the com­pany,” Mr Junk said.

“The De­flec­tor pro­duc­tion ramp up is now com­plete and the op­er­a­tion is run­ning at a steady state.

“The funds raised will pro­vide a strength­ened bal­ance sheet giv­ing us the flex­i­bil­ity to ex­pe­dite our growth plans.”

Im­age:Do­rayMin­er­als. Do­ray Min­er­als’ flag­ship de­flec­tor mine.

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