Silver Lake shares sink after capital raising

Company News

Silver Lake Resources Limited (ASX:SLR) sank to the worst performer of Australia’s benchmark index after completing a capital raising at the end of last week. 
 
The gold producing company raised about $39 million which will be partially put to placing its Murchison mining area on care and maintenance. 
 
Closing the operation will result in about 120 job losses and cost the company $12 million in redundancies and site contract restructuring. Silver Lake will invest the remainder of the capital into its Mount Monger growth projects and general working capital.
 
Despite the capital injection investors appeared disappointed with the issue price of 60 cents per share, representing an 11.8 per cent discount to the last traded price. Only new and existing institutional investors were offered new shares with retail investors unable to participate.  
 
Shares in Silver Lake Resources sank 14.71 per cent following Friday’s announcement to end the week at $0.58. 
 
Silver Lake Resources fell to a net loss of $47 million in the first half of the 2014 financial year.