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Minera IRL Firms Up Details Of Fund Raise Plans For C$15.3mln

Minera IRL (LON:MIRL, TSE:IRL) has today finalised details of its fundraise to raise up to around C$15.3 million mainly to fund early development costs of its Ollachea gold project in Peru.

The firm will now issue 21.55mln shares at C$0.71 per share to raise C$15,300,500.

The market offering is expected to close on or around next Thursday (Feb 7).

The firm's shares closed yesterday at C$0.74.

It comes after the company indicated earlier this week it was looking to raise C$32mln (£20.1mln) to move Ollachea forward.

The company published a definitive feasibility study for the project in 2012 and is currently in the permitting stage for the gold mine.

Minera gives a break-down of how it plans to spend the proceeds at Ollachea, including C$3.1mln for general & administrative costs, permitting, community, archaeology & land acquisition.

C$4.3mln will go towards advancing the tunnel into the rock to 1,200 metres.

Minera has set aside a further C$1mln for underground exploration work at Ollachea.

The project has probable mineral reserves of 9.3 million tonnes grading 3.4 grams per tonne (g/t) gold and containing 1.0 million ounces.

The DFS last November revealed a net present value (NYSE:NPV) of US$155 million (post tax), up-front capital cost estimate of US$177.5mln and life of mine cash operating costs of US$499 per ounce.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.