Australian gold miner, Noble Mineral raises $34.1m to refurbish Bibiani pit in Ghana

Australian mining firm, Noble Mineral Resources says it has raised an amount of $34.1 million to complete the refurbishment of a project at its Bibiani mine in Ghana.

According to the gold miner, the amount was raised through a share placement at 55 cents to institutional and sophisticated investors.

“Proceeds of the raising will be used to complete the refurbishment of the three million tonne per year plant at Noble’s Bibiani Gold Project in Ghana, cover the working capital requirements associated with the start of mining and help fund the extensive drilling program underway, ” said Noble in a statement.

Commissioning of Bibiani is on track for the December quarter, with production ramping up to 150,000 ounces per annum in 2012. Steady state cash costs at Bibiani are forecast at $600-$650 per ounce, meaning Noble will enjoy robust cash margins at current spot prices, the statement adds.

The Bibiani Project is located in the Ashanti Gold Belt, an area said to be endowed with more than 30 million ounces of gold.

By Ekow Quandzie