Brazilian gold producer Cleveland Mining Company (ASX: CDG) is preparing to announce details of a capital raising, with the ASX granting the company a trading halt - with its shares placed in pre-open.
Cleveland Mining recently resumed production from its Premier Gold Mine after implementing a comprehensive cost-cutting plan that will significantly improve future operating margins.
Importantly, C1 cash costs of US$400 per ounce should be achievable once mining of higher grade material commences at Premier and O Capitão.
This is modelled on the basis of 90% gold recovery achieved after the installation of the final circuit and running at about 24,000 tonnes per month.
Cleveland is expected to be cash flow positive in the next quarter, and at the end of July Proactive Investors said it:
'... believes that investors still have a window of opportunity at the current share price of $0.095 before the rest of the market wakes up to its potential.'
Cleveland last traded 63% higher at $0.155.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Monday 26th August 2013.
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