Intergra Mining (ASX:IGR) has raised $40 million in a placement of 83.3 million shares priced at 48 cents a piece. The placement was majorly oversubscribed and it was managed by BBY Limited. Integra Mining was first listed in the Australian Stock Exchange in 2001.
Since then the company has built up its portfolio in the Eastern Goldfields area of Western Australia by getting acquisitions, joint ventures and some strategic alliances in to place. As of now it has control over a consolidated tenement of about 2,200 square kilometers and its flagship mine is the Aldiss Randalls Gold project which is situated east of Kalgoorlie WA.
The funds raised will be used to reduce the debt of the company by making an early repayment of $ 20 million. Another $ 10 million will be used to upgrade a process facility as per Chris Cairns, managing director of Intergra Mining. About $5 million each will be used for definition drilling and working capital.
Mr Cairns also said that the capital raising secures the upside growth potential of the company by repaying debt and increasing production to provide very strong unencumbered cash-flow to fund further growth opportunities. He said that it out the company on a sound financial footing to give significant shareholder value as well.