Minera IRL raises funds for Ollachea project in Peru

Gold mining company Minera IRL on Monday announced plans to raise 32m Canadian dollars to be used mainly to fund development costs for its Ollachea project in Peru.

Gold mining company Minera IRL on Monday announced plans to raise 32m Canadian dollars to be used mainly to fund development costs for its Ollachea project in Peru.

The Latin American group said it intended to file a prospective supplement in Canada - other than Quebec - and the UK, US and parts of South America on a private placement basis.

The offering will be conducted on a marketed basis through a syndicate of investment dealers led by RBC Capital Markets as sole global bookrunner. It also includes Jennings Capital, Fraser Mackenzie and Desjardins Securities.

For the Ollachea project, Minera budgeted C$4.2m for general and administration costs, permitting, community, archaeology and land acquisition, C$6.9m for detailed engineering and to advance the tunnel to 1,200 metres, and C$5.5m to take the tunnel to 1,560m for a second payment.

The remainder of funds will be used for the Don Nicolas project in Argentina, Patagonia exploration and for working capital.

The project is currently in the permitting stage following a definitive feasibility study in 2012.

Shares fell 12.38% to 46.00p at 14:36 Monday.

RD

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021