Vantage Goldfields (ASX:VGO) has raised $2 million via the placement of 20 million shares at $0.10 each with International Aviation Logistics, which will become an 8% shareholder following the placement.
The funds raised will be primarily used for the development of Lily and Taylors gold mines in the Barbeton Goldfield district in South Africa, the second largest goldfield in the country.
The advanced projects there include the Lily Mine which is an underground operation and Vantage is expanding operations with the objective of producing 35,000 ounces of gold per annum for at least 11 years.
The Barbrook Mines Complex is in the process of being developed and includes the first Taylors Mine- Barbrook Stage 1 that produces float concentrates from underground mine.
The Barbrook Stage 2 expansion will target about 70,000 ounces per annum of gold production and a bankable feasibility study underway is likely to be completed in the e fourth quarter of this year.
The Barbeton Goldfield district has a long history of gold production and is the location of several operating gold mines containing multi-million ounce gold deposits, including the Lily Mine.
The mine was acquired and developed by Vantage in 1997 and has already produced more than 100,000 ounces of gold.
The Company has three advanced projects and total estimated Mineral Resources of 4.5 million ounces, including estimated Ore Reserves of 0.5 million ounces.
The capital raising is yet another step in expanding the gold production potential at the Lily and Taylors mine, with the combined operations expected to produce 30,000 ounces in 2013, and expanding to 45,000 ounces next year.
The capital raising bolsters Vantage's cash position by adding to its existing cash balance of $1.14 million.
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