Savannah Goldfields is building its stocks to fund gold mining and processing operations at its Agate Creek and Georgetown projects.

It comes by way of a capital raising program with a target of $14 million.

Main image: Georgetown processing plant and ROM stockpiles

The cornerstone investor is managing director and chief executive officer of Maas Group Holdings Wes Maas.

He’ll have a capital interest of around 19.9 per cent with a $7 million dollar subscription via an investment vehicle.

Allocation

The capital raising will go towards planning and preparations for mining and processing operations restart, working capital requirements for the period and funding financial surety including the environmental bond.

Savannah will also be paying existing creditors and meeting its obligations under short-term borrowings.

Other investors

An entity associated with Mr Maas has also committed to 79 million shares at $0.15 per share to raise about $1.9 million.

Savannah’s chair, Stephen Bizzell has also committed to invest about $2.4 million via investment vehicles.

Existing shareholders have been offered a one for one entitlement to raise $4.5 million subject to shareholder approval.

Another 300 million shares will be issued at $0.15 to raise $4.5 million.

Other directors have agreed to exercise some of all of their pro-rata entitlements to invest a total of $220,000. 

Savannah describes Mr Maas as a ‘successful entrepreneur and business leader and is the founder, major shareholder and CEO of Mass Group Holdings (MGH).’ 

Other interests

Mr Maas last month conditionally agreed to take up to 19.9 per cent of the issued shares in Native Minerals Resources with a $6.5 million investment under the terms of the company’s existing entitlement offer.

The funds will be used to get NMR’s gold projects in the Charters Towers region into production, including its Far Fanning and Blackjack gold deposits and Blackjack processing facility.