Shares in Integra Mining fell after the company confirmed a $25 million placement to expedite exploration plans and pay down debt.
The placement, priced at 29 cents, involved the issue of 86.3 million new shares to institutional clients of brokers Hartleys and BBY, which acted as joint lead managers.
Integra's managing director Chris Cairns said the placement was well oversubscribed with very strong support from existing and new institutional investors.
"The capital raising places us in a very strong position to fast track our exploration program and follow up recent outstanding drilling results," he said.
"We are pleased that the recent repairs made to the crusher have been successful, with operations back to normal production levels."
Integra said recent drilling has extended its Majestic prospect, 22km away from the processing facilities at its flagship Randalls project.
Drilling confirmed an extension to mineralisation to the west of the existing deposit and infill drilling at the main prospect, designed to convert existing resources into ore reserves ahead of the start of mining at Majestic early next year, also returned high-grade hits. Majestic is expected to begin producing gold by late next year and move into full production by 2014.
Exploration at a second nearby prospect also returned excellent results, the company said.
Amid a rush of announcements yesterday, clearing the decks ahead of the announcement of the capital raising, Integra also updated its ore reserve statements at Randalls.
The company said it still had a mine life of about six years remaining at Randalls, excluding its proposed nearby underground mines, and not including the recent discoveries at Majestic and nearby deposits.Integra shares were off five cents, or 14.93 per cent, to 28.5 cents shortly before the close of trade after emerging from a trading halt.
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