Phoenix Gold (ASX:PXG) has raised $605,500 from its share purchase plan priced at $0.10 per share, adding to the recent $5 million share placement to complete the purchase of the St Ives heap leach processing facility.
The take-up of the SPP, which sought to raise $1 million, demonstrates support from the company's shareholders.The company has the right to place the shortfall shares totalling $394,500 to investors subject to applicable regulatory and other requirements.
The heap leach facility is a key part of Phoenix’s development strategy, enabling the treatment of stockpiled lower grade ore mined from Castle Hill and surrounding projects.
The facility will be relocated to the wholly-owned Castle Hill, which has the potential to become a multi-million ounce gold mine.
In July 2014, the company had agreed to acquire the 2.3 million tonne per annum St Ives heap leach processing plant located near Kambalda, 70 kilometres south of Kalgoorlie from St Ives Gold Mines Pty Ltd for $2 million.
The heap leach processing plant consists of a 3 stage crushing plant, agglomeration drum, overland conveyors and stacking equipment, full gold recovery circuit and all associated infrastructure and spare parts.
The plant will enable treatment of stockpiled lower grade ore mined from Castle Hill.
Current Indicated and Inferred heap leach resources for Castle Hill and its surrounding projects stands at 58.34 million tonnes at 0.6 grams per tonne for 1.1 million ounces of gold.
