Romarco raising C$80m to fund Haile gold project

Romarco Minerals (TSX: R) looked to the markets for an C$80.5 million top-up.

On Tuesday the Toronto-based junior said that National Bank Financial and BMO Capital markets would lead a bought-deal financing to sell 70 million common shares of Romarco stock at C$1.15 a share.

The equity financing will dilute Romarco's shares outstanding to about 573 million while the proceeds of it will add significantly to those Romarco raised last year in a C$120 million bought-deal financing comprising 61 million shares at C$1.97.

At the end of the second quarter, June 30, 2011, Romarco said its cash balance was $63 million.

Among other things, Romarco said it will use the cash to pay for development of its Haile gold project in South Carolina, which earlier this year it estimated would cost $275 million to build.

Romarco is in the midst of environmental permitting at Haile, where reserves stand at 2 million ounces gold @ 2.06 g/t. This summer the U.S. Army Corps of Engineers, which is in part responsible for overseeing permitting of the Haile project, asked Romarco to complete an environmental impact statement (EIS) on a wetland portion of the project.

That request added about a year to Haile's development schedule, Romarco then reported, as the EIS would require more work to complete than an alternative environmental assessment process that the US Army Corps of Engineers could have instead requested.

In the meantime Romarco is looking into the high-grade underground potential at Haile. Recent drilling results highlighted that deeper dimension as Romarco hit as much as 33 meters @ 10.5 g/t gold and 88 meters 5.1 g/t Au in the Horseshoe area at Haile.

Characteristics

Gold is the most malleable and ductile of all metals; a single gram can be beaten into a sheet of 1 square meter, or an ounce into 300 square feet. Gold leaf can be beaten thin enough to become translucent. The transmitted light appears greenish blue, because gold strongly reflects yellow and red. Such semi-transparent sheets also strongly reflect infrared light, making them useful as infrared (radiant heat) shields in visors of heat-resistant suits, and in sun-visors for spacesuits.
Gold readily creates alloys with many other metals. These alloys can be produced to modify the hardness and other metallurgical properties, to control melting point or to create exotic colors (see below) Gold is a good conductor of heat and electricity and reflects infrared radiation strongly. Chemically, it is unaffected by air, moisture and most corrosive reagents, and is therefore well suited for use in coins and jewelry and as a protective coating on other, more reactive, metals. However, it is not chemically inert.
Common oxidation states of gold include +1 (gold(I) or aurous compounds) and +3 (gold(III) or auric compounds). Gold ions in solution are readily reduced and precipitated out as gold metal by adding any other metal as the reducing agent. The added metal is oxidized and dissolves allowing the gold to be displaced from solution and be recovered as a solid precipitate.
High quality pure metallic gold is tasteless and scentless, in keeping with its resistance to corrosion (it is metal ions which confer taste to metals).
In addition, gold is very dense, a cubic meter weighing 19,300 kg. By comparison, the density of lead is 11,340 kg/m³, and that of the densest element, osmium, is 22,610 kg/m³.

White Gold

White gold is an alloy of gold and some white metals such as silver and palladium. White gold can be 18kt, 14kt, 9kt or any karat. For example, 18kt yellow gold is made by mixing 75% gold (750 parts per thousand) with 25% (250 parts per thousand) other metals such as copper and zinc. 18kt white gold is made by mixing 75% gold with 25% other metals such as silver and palladium. So the amount of gold is the same but the alloy is different.
Traditionally nickel was used in white gold, however, nickel is no longer used in most white gold made today as nickel can cause reactions with some people. We do not use nickel in our white gold

When white gold rings are new they are coated with another white metal called Rhodium. Rhodium is a metal very similar to platinum and Rhodium shares many of the properties of platinum including its white color.
The rhodium plating is used to make the white gold look more white. The natural color of white gold is actually a light grey color. The Rhodium is very white and very hard, but it does wear away eventually. To keep a white gold ring looking its best it should be re-rhodium plated approximately each 12 to 18 months. Most local jewelers are able to rhodium plate jewelry for a cost effective price.
See Gillett's Jewellers white gold jewelry by choosing a category below:

Story of Gold

California Gold Rush 1848

The story of gold is as rich and complex as the metal itself.
Wars have been fought for it; love has been declared with it. Ancient Egyptian hieroglyphs portray gold as the brilliance of the sun; modern astronomers use mirrors coated with gold to capture images of the heavens.
By 325 BC the Greeks had mined for gold from Gibraltar to Asia Minor. In 1848 AD John Marshall found flakes of gold whilst building a sawmill near Sacramento and so triggered the gold rush in California.
Held securely in national vaults as a reserve asset, gold has an irrefutable logic; released from the tombs of pharaohs and emperors alike, gold has an undeniable magic.
In Heritage we describe just some of the key moments from gold’s history. Further sections take time to discuss important fundamental issues such as the relationship of demand and supply, gold’s price history; the golden constant and gold’s contribution to society.
Numbers and facts draws together some of the more extraordinary statistics which gold has accumulated across the centuries and around the world.