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PanTerra Gold Tops Up Working Capital With A$5M Placement

PanTerra Gold (ASX: PGI) will raise A$5 million of additional working capital from a placement to sophisticated investors.

The company has arranged the placement of 33.3 million shares at $0.15 each, and will also issue one free share option, convertible at $0.175 on or before 31 December 2014, for every two shares issued in the placement.

Highlighting the investor appetite for PanTerra stock, the capital raising was undertaken at the current share price.

Brian Johnson, executive chairman, said it was disappointing to have to top up working capital with resultant dilution as a consequence of problems with mechanical equipment supplied to its Las Lagunas process plant in the Dominican Republic.

Plant throughput has been restricted for over four months during the ramp-up phase of the project, resulting in a significant reduction in anticipated revenues.

Johnson said the plant will be run at design capacity this week and PanTerra's technical staff are confident gold and silver production levels established by pilot plant test work will be achieved in December 2012.

Earlier this month, PanTerra increased the amount of gold and silver forwarded to refiners as it runs up the larger shell for the ultrafine grinding mill at its Las Lagunas in the Dominican Republic.

Bullion forwarded to refiners reached 542 ounces of gold and 5,003 ounces of silver on 2 November, up from the 480 ounces of gold and 4,723 ounces of silver on 26 October before the new shell was installed.

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