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Thursday, 8th July 2004 (4252 views)

Australia's Bendigo Mining Company has announced that it has secured $115 million in overseas investment.<BR/><BR/>The cash investment will allow the firm to restart full-scale mining in the city by the end of next year.<BR/><BR/>Bendigo managing director Doug Buerger said institutional investors from Australasia, North American and Europe had paid $A0.72 a share, following a $A100 million offer jointly managed by Austock Ltd and CIBC World Markets.<BR/><BR/>Mr Buerger predicts that the underground mine in the historic Victorian town will produce an average of 600,000 ounces of gold annually over the next 20 years. Production at the site is due to start in the last quarter of 2005, at an initial annual rate of 83,000 ounces a year.<BR/><BR/>"That will make Bendigo's underground mine one of the biggest underground gold mines in Australia and because we're going to be producing at a cost of about $170 Australian an ounce it will make it one of the most profitable gold mines in Australia as well," Mr Buerger said.<BR/><BR/>He added that the company expects to employ a workforce of around 550 at the mine during peak production.<BR/><BR/>Bendigo Mining's two major shareholders Harmony Gold and General Oriental Investments are also sub-underwriting a share purchase plan for existing shareholders up to a value of $A15 million.<img src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=6022057"/>

 

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