West Australian gold explorer Focus Minerals Limited (ASX: FML) is pleased to announce that its Board of Directors has approved a plan (Resumption Plan) to pursue the resumption of mining operations at the Coolgardie Gold Project (Coolgardie).
Coolgardie covers 138km2 of highly prospective tenements on the outskirts of the Coolgardie township in the Goldfields region.
The Board has developed the Resumption Plan using the 2020 Prefeasibility Study and is focused on immediately beginning to carry out a number of the preliminary activities and assessments required for the advancement of the proposed resumption of mining operations at Coolgardie
The Resumption Plan targets recommencing operations at Coolgardie during 2022 but acknowledges that this timeframe may change.
In parallel, Focus is pleased to announce a 1-for-1 non-renounceable entitlement offer of new shares at an issue price of 25¢ to raise up to $45.7 million.
The proceeds of the entitlement offer, together with the funds available to the Company, will be used to pay the costs associated with funding the implementation the Resumption Plan and provide working capital to fund the continued operation, exploration and assessment of the company’s projects.
To advance the Resumption Plan in accordance with such a contracted timeframe, it contemplates Focus taking actions including assessing and potentially updating the Coolgardie 2020 PFS.
The company is in the process of selecting contractors to evaluate and undertake the necessary assessment of the critical engineering works required for the resumption of mining operations. This will include a detailed evaluation of the recommissioning cost estimate for the Three Mile Hill processing plant.