Allied Gold raises $31m in placement

Investors have swamped Subiaco-based Allied Gold's capital raising which closed oversubscribed having raised nearly $31 million.

Allied said today it is finalising the issue of some 61.5 million new shares priced at 50 cents apiece, raising around $30.75 million.

Subscribers to the placement included existing institutional shareholders, mainly based in the UK, and two global institutional gold funds which are new to Allied's share register.

Funds raised will be used to retire the Simberi oxide project financing debt facility, accelerate expansion studies at the project, continue exploration works and start capital initiatives for the optimisation of gold production.

The raising was managed by Mirabaud Securities in the UK and Evans and Partners in Australia.

Shares in Allied were down 0.5 cents to 51c at 11:42 AEDT.