Gold Road completes $9m placement

Gold Road Resources has completed a $9 million share placement to professional and sophisticated investors, which will be used to fund exploration and evaluation of its Yamarna project east of Laverton.

Gold Road Resources, formerly Eleckra Mines, issued 26.5 million shares at 34 cents each.

Bell Potter Securities was the lead manager in the capital raising.

"Demand for the Placement was strong and the issue closed oversubscribed with some scale-back necessary," Gold Resources said in a statement to the Australian Securities Exchange.

"The price of 34 cents represents a discount of 7 per cent from the last closing price of 36.5 cents on 1 December 2010."

Gold Road's executive chairman Ian Murray said the placement, together with expected funds from the exercise of listed options prior to their 30 June 2011 expiry date, will provide the Company with up to $14 million for continued exploration at Yamarna during 2011.

"Exploration activity at our wholly-owned Yamarna Project is ongoing and we expect to announce the maiden JORC resource for the high-grade Central Bore deposit during the first quarter of 2011," said Mr Murray.