Mineral exploration company Conquest Mining Ltd
(ASX:CQT) has announced a $65 million equity raising to fund the construction of its Silver Hill gold project.
The company plans to raise $50 million via a placement of 80.6 million shares to institutional and sophisticated investors at 62 cents a share, and a share purchase plan for existing shareholders at the same offer price to raise $15 million.
Managing Director John Terpu says that with the Silver Hill Project now at an advanced stage of development, the funding will allow construction to commence in early 2010.
The company says the proceeds from the raising, in conjunction with the potential debt alternatives that will be finalised after the definitive feasibility study is completed in November 2009 will provide full funding for the development of the entire Silver Hill high grade concentrate operations.
Conquest says a portion of the funds will also be allocated to exploration allowing the company to unlock increased value in the highly prospective regional tenements.
Conquest Mining posted a profit in 2008 after losses the four years previous.
