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Norseman Gold raises £11.25 mln to bring North Royal open pit into production

Norseman Gold (LON:NGL, ASX:NGX) has raised £11.25 million to help bring the North Royal Open Pit into production.

The new capital was raised through a private placing which was organised by Ocean Equities and Seymour Pierce.

Norseman issued 25 million shares at 45p each.

Once complete, the North Royal Open Pit will be the fourth producing gold mine in Norseman’s portfolio.

The company said that pit optimisation at North Royal has identified 85,000 ounces of resource capable of being mined in the initial Main Pit area, while reporting progress with the dewatering as well as obtaining regulatory approvals for the commencement of mining.

Investors had been expecting the funding news after Norseman’s Australian securities were suspended last week.

The new shares will begin trading on London’s AIM market on 7 October 2010.