Develop said it had received firm commitments for $37.2m as part of an institutional placement and rights issue conducted at a 4 per cent premium to the company’s last traded price.
Mr Beament said the strong demand for the raising and the premium price reflected the quality of the Woodlawn project, the attractive purchase price and the significant growth potential.
“We now look forward to unlocking the significant value in the asset through our extensive planned underground exploration program aimed at substantially growing the inventory,” he said.
Develop announced last week it had picked up Woodlawn in a $30m cash and scrip deal along with milestone payments amounting to $70m from the administrators of the collapsed Heron Resources.
Woodlawn, 250km south-west of Sydney, had been expected to produce 40,000 tonnes of zinc in concentrate, 10,000t of copper in concentrate and 12,000t of lead in concentrate, along with associated gold and silver over an initial 9.3-year minelife.
But the asset has been on care and maintenance since March 2020 after Heron ran into financial difficulties.
The deal represents the first significant acquisition for Mr Beament since he left Northern Star Resources last year to head the new entity in which he has ploughed $37m of his own cash.
Develop will also conduct a retail rights issue, which will bring the total funds raised to about $50m.
