Heritage Gold taps shareholders for $2 mln, ED upbeat on outlook

Wednesday 16th December 2009

Heritage Gold NZ Ltd, the gold miner that was recently granted the North Island’s first permit outside of Waihi in 18 years, raised almost $2 million from shareholders in a share purchase plan, and its executive director is upbeat about the sector’s future.

The company raised some $1.95 million in a share purchase plan from 335 shareholders across New Zealand and Australia at the equivalent of 3.5 cents a share or 2.8 Australian cents a share.

Executive director Peter Atkinson said the “overwhelming majority” of acceptances came from New Zealand and was an “endorsement of the strategic direction” of the company.

“It is a positive signal for the New Zealand gold mining industry, particularly with gold prices at near-record levels, and also reflects the mining sector generally receiving more attention from the government,” Atkinson said in a statement. “This market turnaround shows New Zealanders are becoming more aware of the potential of our mineral resources.”

Earlier this month, Heritage Gold was granted a 25-year permit to extract gold and silver from the site of the old Talisman mine near Paeroa in the Coromandel by Resources Minister Gerry Brownlee.

Last month, Brownlee and Conservation Minister Tim Groser announced public consultations will be held early next year to review protected areas of conservation land as part of a stocktake of New Zealand’s mineral wealth.

Shares in Heritage gained 2.7% to 3 cents on the NZX today, though they’ve eased from the 4.6 cents they reached earlier this month when the Talisman mine permit was first announced.

The company plans to use the funds to continue exploration in Waihi and metal prospects in Northland and Australia’s Broken Hill. It will also be used to fund working capital.

Businesswire.co.nz

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