The Capital Raising will allow Focus to accelerate growth and development of the Coolgardie Gold Project, where the Company is aiming to establish a long-term sustainable production base of 100,000 ounces per annum.
The decision to undertake the Capital Raising to fast-track the refurbishment and modernisation of the Company's 1.2Mtpa Three Mile Hill treatment facility (Plant Refurbishment) follows recent increases in the Company's gold resource base - including a significant upgrade at the Company's Brilliant Deposit and ongoing successful exploration and development programs.
This decision is supported by the current strong gold price environment, which is creating unprecedented opportunities for gold producers to make significant margins. The Board has determined that this strategy represents the best option for the Company in terms of enhancing shareholder wealth, rather than utilizing cash flow from existing operations - which would effectively delay the implementation of this growth strategy by 12-14 months.
Focus Minerals Ltd (ASX:FML) is an Australian-based exploration and development group whose focus is to become a significant gold and nickel producer in the Coolgardie-Kalgoorlie-Widgiemooltha region of Western Australia.
Focus Minerals is the largest landholder in the Coolgardie Gold Belt located in Western Australia, 560km east of Perth and 35km west of the 'Super Pit' in Kalgoorlie-Boulder. More than 2.6 million ounces of gold has been produced from the Coolgardie gold belt alone since 1892. Focus holds the mineral rights to more than 210sq km of tenements including an extensive inventory of Measured, Indicated and Inferred gold resources as well as the 1.2mtpa Three Mile Hill processing plant
Focus Minerals Ltd
About Focus Minerals Ltd
Focus Minerals Limited (ASX:FML) is a leading Australian gold producer operating two significant production centres in Western Australia's Eastern Goldfields. The company is the largest landholder in the Coolgardie Gold Belt, 35km west of 'Super Pit' in Kalgoorlie, where it operates 3 mines: The Tindals Underground; Tindals Open Pits; and The Mount underground. Gold is processed at Focus' 1.2Mtpa processing plant, Three Mile Hill, which is adjacent to the town of Coolgardie. Focus also operates, through its 81.57% majority shareholding in Crescent Gold, the Laverton Gold Project, located 250km northeast of Kalgoorlie in Western Australia. Laverton comprises a significant portfolio of large scale open pit mines, with ore being processed under an OPA at the nearby Barrick Granny Smith mill.
Focus Minerals Ltd