Newcrest completes $1bn raising to propel growth ambitions

According to Mining News Pro - The gold miner issued more than 39 million of new shares to investors at a price of $25.60 per share.

Newcrest stated that it received strong interest from local and overseas existing shareholders and new investors.

Newcrest plans to use the fund to expand its exposure to gold production at Lundin Gold’s Fruta del Norte mine in Ecuador, as well as to fund growth options such as the construction of declines at the Havieron and Red Chris projects in Western Australia and Canada, respectively.

“We are pleased with the continued support from our institutional shareholders, their confidence in Newcrest’s long-term growth strategy and their support of the Fruta del Norte transaction,” Newcrest chairman Peter Hay said.

“Our strong balance sheet position and free cashflow generation positions us well to fund our growth options.”

Newcrest is expected to resume normal trading on the Australian Securities Exchange (ASX) today after being placed in trading halt due to the placement.

The company intends to raise an additional $100 million via a share purchase plan to fund its growth ambitions.