Laneway, which announced a deal to acquire Georgetown in northern Queensland in February, has announced a A$15 million funding push, with its largest shareholder, a company associated with chair Stephen Bizzell pledging $3.25 million.

 

Entities related to other directors have also committed to subscribe for up to $250,000 worth of shares in the raising, subject to shareholder approval.

 

All told, Laneway has received binding commitments for over $13 million of the financing program, which comprises a $12.5-14 million convertible note issue priced at 0.7c, and a $2.5 million equity raising at 0.5c per share.

 

The notes will attract interest of 12% per annum, and will mature in September 2025.

 

The cash will help it meet payments for Georgetown, and cover the costs of the ongoing plant refurbishment, and some near-mine exploration.

 

Laneway has paid $1.95 million to date, and $4 million is due on September 2.

 

A further $10.9 million of deferred payments, plus 200 million shares and options are due by January 2023. Royalties of $5 million will also be payable from production.

 

Georgetown comes with 119,000oz of resources grading 3.9gpt, a "barely used" 200,000-300,000tpa carbon in pulp plant, and 515sq.km of leases. 

 

Some 9000t of ore has been trucked 100km from Laneway's 471,000oz Agate Creek operation, and is being crushed with the aim of commissioning the mill, with processing expected this month.

 

Announcing the deal earlier this year, Laneway managing director Brad Gordon said securing a position within the Etheridge gold field was critical to the company's plans to develop two processing hubs capable of treating both oxide and sulphide material within five years.

 

Gordon expects the sulphide circuit can be added at Georgetown at a cost of $2 million.

 

The company previously hauled its ore some 700km for processing at the Black Jack mill.

 

Georgetown will help fund a proposed 750,000tpa oxide mill at the high-grade Agate Creek, with Laneway seeing indications of more exploration success, including potential for Kidston-style mineralisation.

 

Laneway shares were last traded at 0.5c, valuing it at $32 million.

 

It has about $4.6 million in cash remaining.

 

The stock has traded at 0.3-0.7c over the past year.

 

A 40-for-one share consolidation is being planned.