Beadell raises $30 million for Tucano

Beadell Resources has successfully completed a $30 million share placement to raise $30 million for the development of a processing plant and exploration programs at its Tucano gold project in Brazil.

Beadell said the 85 cents per share placement was heavily oversubscribed.

It was jointly managed by Southern Cross Equities and Ord Minnett.

Beadell will use the funds to expand its exploration program to add an additional 3 million ounces of gold to hold a total of 7 million ounces of gold resources.

The company is targeting the first half of next year to begin gold production.

Beadell managing director Peter Bowler said the support received was a recognition of the quality of the Tucano project.

"This modest raising, undertaken at a minimal discount to our current share price, aligns with the company's strategy of maintaining a conservative balance sheet whilst minimising dilution for our shareholders," Mr Bowler said.

Beadell shares were down 7.65 per cent to finish trading at 84.5 cents today.