Centamin Egypt, a gold mining company,  has said it has entered into a new Canadian $60 million agreement with a syndicate of underwriters.

Centamin has been exploring for gold in Egypt since 1995 and holds an exploitation lease over the Sukari Hill gold project, which has a current resource of 9.01 million ounces of gold measured and indicated, according to Commodity Online.

Led by Thomas Weisel Partners Canada and Cormack Securities, the syndicate has agreed to buy 92,308,000 ordinary shares from the gold exploration firm on a bought-deal basis to sell to the public.

Centamin Egypt has stated that the deal is currently subject to approval by the Toronto Stock Exchange and plans to use the net proceeds of the offering for the continued development of its Sukari gold project in Egypt.

Work taking place at the gold prospect includes underground development, exploration, general corporate and working capital activities.

The company is carrying out construction operations at the Sukari Hill project with a view to starting production in the second quarter of this year.