CGA to raise $79m in private placement

Gold outfit CGA Mining says it will raise $C74.8 million ($A78.5 million) through a private placement to pay down debt and ramp up exploration efforts at its Masbate project in the Philippines.

The company today said it had entered into a deal with a syndicate of underwriters led by BMO Capital Markets and including Haywood Securities for the issue of 34 million shares at $2.20 each.

The underwriters also have an option to buy a further 5.1 million shares.

The offer is expected to close early next month.

The Masbate project is the largest gold operation in the Philippines with first gold pour achieved last year in May.

The mine is currently forecast to produce more than 200,000 ounces each year.

Shares in CGA shed 12 cents to $2.45 at 11:43 AEDT.

Last year, CGA raised a total of $C70 million ($A73.5 million) through three separate capital raisings.