Successful Completion of Capital Raising
Hill End Gold Limited (ASX:HEG) is pleased to announce that it has successfully completed a share placement to sophisticated investors to raise A$2.43 million through the issue of 44.16 million shares at 5.5 cents per share (‘Placement Share’).
Each Placement Share has an attached 1:2 option, exercisable at 10 cents per share at any time up to three years from the expected allotment date of 24 May 2011.
The funds will be utilised towards the timely progression of the Company’s strong forward drilling programs to assess the open pit potential at both the Hargraves and Red Hill Projects. In addition the funding will ensure the completion of a significant scoping study at the Hill End Project into underground development of the Hawkins Hill-Reward Deposit using low cost bulk mining methods.
HEG Managing Director Philip Bruce said, “This equity raising will allow us to capitalise on opportunities highlighted by the significant exploration success we have so far achieved at the Hargraves, Hill End and Red Hill Projects.
We have a solid capital management plan in place of which capital raising initiatives are an integral part. The strong support we have received from investors demonstrates confidence in our strategy of proving up of a large resource base with a near term target of one million ounces to form the basis for profitable production on a significant scale.”
Martin Place Securities Pty Ltd and Cygnet Securities Australia Pty Ltd acted as joint Lead Managers on the transaction.