Gold exploration and mining group Wilton Resources Corp Ltd announced today that it has raised $3 million through a private placement. The company has placed 55.5 million new shares to a private investor at an issue price of S$0.054 each – a 10 per cent discount to the average price of $0.06 per share.
Executive Chairman and President of Wilton Resources Wijaya Lawrence said, the placement shares will be alloted and issued in accordance with the authority granted by shareholders. He pointed out that net proceeds of the placement will be used to fund the ongoing development of the Group’s Ciemas Gold Project.
“The success of the placement is a vote of confidence in the prospects of our gold mining business.” Lawrence said in a statement, Thursday.
The Ciemas Gold Project covers two concession blocks, which consist of an area of 3,000 hectares in West Java, Indonesia. Only 200 hectares of this area has been explored.
Based on a recent report, the blocks have a total of 4.6 million tonnes of mineral resources containing approximately 39,000 kilograms of gold. Total production costs for the project have been estimated of between $600 to $700 per ounce.
Gold prices are projected to remain firm at the current level, due to the low and negative interest rate policy pursued by the central banks of several countries.
Already engaged in the business of exploration and mining, Wilton Resources is steadily progressing towards its goal of starting gold dore production, which is expected in the fourth quarter this year.
The company has planned a pilot production programme, with an initial capacity of 100 tonnes per day. To achive that target, numerous activities in metallurgical test work, hydrology and land use, engineering design and optimum mining process flow, as well as acquisition of surface rights have been carried out.