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

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022