GUYANA – Toronto-based Guyana Goldfields has increased its public offering to $130 million through the sale of 13.83 million shares priced at $9.40 each. The underwriters, let by BMO Capital Markets, Scotiabank and RBC Capital Markets, will purchase 12.83 million shares from the company and 1.00 million from Patrick Sheridan, the founder and executive chairman of Guyana Goldfields. The underwriters have also been granted a 15% over-allotment.
The net proceeds of the offering will be used to expand the Aurora gold project that achieved commercial production on Jan. 1, 2016. The plan is to expand milling capacity to 8,000 t/d from 5,000 t/d at a capital cost of approximately $7 million. As the mill expands, mining will move from the open pit to a new underground mine. Guidance for this year is 140,000 to 160,000 oz of gold.
The technical report for the Aurora project is available at www.GuyGold.com.