G-Resources share sale

G-Resources raises $217 million for gold mining project

Taking advantage of the strong gold price and continued progress at its greenfield Indonesian mining project, the company sells a 20% stake through a top-up placement.
<div style="text-align:left;">
G-Resources has already found gold and is due to start production at its Indonesian mine in December this year (AFP) </div>
<div style="text-align:left;"> G-Resources has already found gold and is due to start production at its Indonesian mine in December this year (AFP) </div>

Hong Kong-listed G-Resources Group, which is in the process of developing a greenfield gold and silver mine in Indonesia, on Wednesday raised HK$1.69 billion $217 million from the sale of new shares after saying in early May that the project cost will be about 30% higher than earlier estimated.

This will put the total cost at $576 million. The company initially said that it intended to fund the additional cost through a new $250 million bank facility, but when an opportunity to raise more equity presented itself, it decided to take advantage.

The fact that the spot gold price is trading at record levels above $1,600...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222