The Australian share market has rallied at the open following a positive performance in US markets and in anticipation of the RBA’s monthly interest rate decision tomorrow.
The S&P/ASX 200 index is 57 points up at 4,278. On the futures market the SPI is 50 points higher.
Ausgold Limited (ASX:AUC)
says it has raised $6.8 million via a placement of 20.7 million new shares at $0.33. The gold and copper explorer is seeking to raise $9 million through GMP Securities, and intends to raise another $2 million through a share purchase plan to existing investors. The funds will allow Ausgold to maintain a structured exploration program in the great southern region of Western Australia. Shares in Ausgold last traded at $0.38.
Silver Lake Resources Limited (ASX:SLR)
will acquire Integra Mining Limited (ASX:IGR)
via a scheme of arrangement at an exchange ratio of 1 new Silver Lake share for every 6.28 Integra shares. The offer values Integra at $426 million. The transaction has been unanimously recommended by the boards of both companies. Silver Lake’s chief says the acquisition will further diversify its asset portfolio with increased gold production. Shares in Silver Lake are trading down 11.62 per cent at $2.51.
Best and worst performers
All sectors are in the black. The best performing sector is materials gaining 232 points to 9,434. Shares in Integra Mining Limited (ASX:IGR)
have surged 22.22 per cent and trading at $0.39. Shares in Rio Tinto and Fortescue are also stronger.
The sector with the smallest gains is utilities, gaining 15 points to 5,101. Shares in SP AusNet (ASX:SPN)
have fallen 1.18 per cent, trading at $1.05. Shares in Duet Group are down whilst AGL Energy is higher.
Gold and the dollar
Gold is trading at $US1,606 an ounce and the Australian dollar is buying $US1.057.