Gold miner St Barbara Ltd
(ASX:SBM) says it is to undertake a 4 for 13 non-renounceable pro rata entitlement offer to raise up to $124 million at an offer price of 27 cents a share.
The offer price represents a 25 per cent discount to the company’s last traded price yesterday of 36 cents.
The offer comprises of an institutional offer to raise around $73 million and a retail entitlement offer to raise between $27 million and $51 million.
CEO Tim Lehany says the offer is an outcome of the company’s recent strategic review, and will leave St Barbara with the balance sheet and funding flexibility to pursue its growth objectives.
Some of the proceeds will go towards the development of Tower Hill or Tarmoola subject to final approval following completion of a feasibility study.
St Barbara has posted net losses in the last three years.
