Thursday 10th July 2008
Mercator in £4m placing
Western Australia-focused Mercator Gold has raised £4 million at 40p a share to accelerate access to the Bluebird open pit at Meekatharra.
Cenkos Securities and Ocean Equities handled the placing for the AIM-quoted company, run by entrepreneurial Aussie mining veteran Patrick Harford. London-based Mercator is mining the nearby Surprise deposit holding a 63,000 oz gold reserve at a low grade of 2.4 grammes of gold per tonne of ore, but says that Bluebird, with a reserve of 133,000 oz at 2.4 grammes a tonne, is a ’key component of our development strategy’.
Shares in Mercator, which hit 106p three years ago, now trade at 38.5p, valuing the company at £24 million.
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