Lihir Gold to sell $325 million of stock in institutional placement

New York, March 3 - Lihir Gold Ltd. launched a $325 million institutional placement of shares.

The offering will be made to accredited and sophisticated investors via an institutional bookbuilding. Settlement is scheduled for March 12.

Caliburn Partnership is acting as financial adviser.

Proceeds will be used to accelerate the planned process plant expansion at Lihir Island in Papua New Guinea, allowing the company to take advantage of changing market conditions that have reduced prices and cut lead times for components, to position the company for further growth opportunities that emerge, including in West Africa, and to provide continued financial strength and flexibility.

"The recent downturn in global commodity markets has significantly reduced demand for mining industry equipment, process plant components and steel fabrication, which has led to more competitive pricing and created the opportunity for some stages of the Lihir Island expansion to be brought forward. These include earlier installation of crushing, oxygen production, grinding, leaching and water supply facilities," said Arthur Hood, chief executive officer of Lihir Gold, in a news release.

After the placement, eligible shareholders will be given the chance to participate in a non-underwritten share purchase plan allowing them to subscribe for up to A$5,000 of shares.

Lihir Gold is a Port Moresby, Papua New Guinea, gold miner.

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