Toronto-based Crocodile Gold is well funded and does not expect any further share dilution will be necessary this year, chairperson Stan Bharti said on Tuesday.
Crocodile Gold, which has mines and projects in the Northern Territory of Australia, sold shares and warrants to raise C$85-million in a bought-deal financing in March.
The company said at the time it would use the funds to develop its Cosmo underground mine, accelerate exploration spending, expand mill capacity at the Union Reef plant, build a gas-fired power plant, and for general corporate purposes.
Cosmo, which is scheduled to start production in the fourth quarter of this year, will be a "keystone" asset for Crocodile Gold, Bharti said on a conference call.
The company expects to produce around 150 000 to 200 000 oz in 2012, including some 100 000 oz from the Cosmo mine.
"I don't expect any further dilution," Bharti said.
The March fundraising "will keep us going until this mine is really performing," he said.
Crocodile Gold announced last week it had appointed Chantal Lavoie as CEO, with effect from June 21.
Lavoie's previous role was as acting CEO of De Beers Canada, where he was responsible for the Snap Lake and Victor mines, as well as the group's Gahcho Kue project.
Bharti is CEO and owner of Forbes & Manhattan, the merchant bank that acquired the Australian assets of GBS Gold and listed the new company, Crocodile Gold, in 2009.
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Crocodile shares rose 3,8% on Tuesday, to C$0,82 apiece by 16:00 in Toronto.
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