Centaurus raises $7m from placement

West Perth-based gold and base metals explorer, Centaurus Resources Ltd, has raised $7 million through the issue of 3.7 million shares at $1.90 per share, to institutional and sophisticated investors.

The majority of the funds will be applied to the ongoing development and acquisition of the company's near production Brazilian iron ore project, Liberdade.

Centaurus plans to complete work on resource definition at Liberdade within six months, and based on the results of that phase, believes that production at Liberdade is possible by early to mid 2009.

Additionally, the funds will be used to continue to execute the company's Iron Quadrangle strategy through the review of new Brazilian iron ore prospects that may be added to the existing ground position in the typically
high grade North Eastern region of the world renowned Iron Quadrangle.

Centaurus does not require further shareholder approval to make the placement.

Centaurus acquired an initial interest of 10 per cent in the owner of the Liberdade iron project Mineraçao Marsil Ltda in January this year through the payment of US $1 million.

Centaurus has the right to acquire up to 60 per cent of Mineraçao Marsil Ltda as JORC compliant resources are defined at Liberdade.

The Liberdade Project, with its existing mining lease, represents the cornerstone of Centaurus' strategy to build a portfolio of resource tenements within the Iron Quadrangle around a producing mine and processing facility to feed domestic demand.

Up to 50 potential target tenements have been identified as meeting Centaurus' criteria and approaches to potential strategic tenement holders have commenced.

Centaurus had gained 26 cents, or 12.44 per cent, to reach $2.35 per share by 12:07 AEDT.