Citigold Corporation Limited
(ASX:CTO) has reached an agreement with Asian based investment company Express Management to raise $100 million through convertible bonds.
The bonds will convert at 7 cents per share, a 27.5 per cent premium to Citigold’s closing market price last Friday.
Proceeds from the bonds will be used to support the commercialisation of the company’s key asset at Charters Towers in Queensland, as well as provide working capital.
Managing Director Mark Lynch says the investment will give Citigold the chance to successfully exploit its impressive gold deposit at Charters Towers and deliver solid returns to its shareholders.
Citigold reported a $3 million loss in the first half of fiscal 2013.
