Lachlan Star closes private placement, A$15.1m in gross proceeds

Gold producing Lachlan Star (ASX: LSA) is now very well-funded after completing the private placement of special warrants, with the company raising gross proceeds of A$15.1 million.

Lachlan Star in total issued 18.4 million warrants at $0.82.

The net proceeds will be used by Lachlan Star plans to development the company’s gold producing CMD Gold Mine in Chile.

The latest gold hits at CMD

Lachlan Star is currently drilling at the Toro and Tres Perlas Deposits, and earlier in the month announced the latest highlights from Toro which included, 16 metres at 1.30 grams per tonne (g/t) gold from 111 metres, and 7 metres at 1.76g/t gold from 55 metres.

There were also some very broad hits including 29 metres at 0.73 g/t gold from 40 metres.

Adding some spice to the overall economics at CMD, Tres Perlas has delivered some copper hits including 12 metres at 0.47% copper from 47 metres, and 20 metres at 0.42g/t gold from 47 metres.

June quarter gold sales of US$15.3 million

In the June 2011 quarter the company delivered a 20% boost in gold production to 10,134 ounces with an average sale price of US$1510 per ounce - providing gross revenues of US$15.3 million.

The month of June produced 4250 ounces - the most for a month since acquisition.

The C1 cash cost was US$841 per ounce.

A major plus to the June quarter production was 55% of the ore was sourced from outside of the JORC Resource.

The company said there is another plus 682 ounces of gold in inventory, with 10,559 ounces of gold stacked onto the leach pad.

The company has an unhedged production of around 45,000 gold ounces annually.

CMD is an open pit heap leach gold mine that commenced production in 1995 and has historically produced around 830,000 gold ounces.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19056/lachlan-star-closes-private-placement-a151m-in-gross-proceeds-19056.html