Ramelius taps investors

Ramelius Resources has outlined plans to raise up to $8.6 million to fund the development of its Western Australian gold projects.

Ramelius said it would raise $2.1 million by placing 32.3 million shares at 6.5 cents each.

It will also seek to raise $6.5 million via a non-renounceable one-for-four entitlement issue at the same price, which represents a 34 per cent discount to its previous closing price.

Subscribers to the entitlement issue will also receive one free option for every two shares subscribed for, exercisable at 12 cents by August 2015.

The company will use the funds to progress the development of its Kathleen Valley gold project and Vivien gold project.

Ramelius bought the Vivien project from South African-based producer Gold Fields last year for $10 million.

The company’s share price was down 20 per cent on the news to 8 cents each at 12.50pm (WST).