Manas Resources has initiated a $5.1 million capital raising to fund pre-development activities at its Shambesai gold project in the Kyrgyz Republic.
The company said it had finalised plans for a two-tranche share placement, priced at 10 cents per share.
Manas said the private placement would be managed by Blackwood Capital.
The funds will take Manas’ cash balance to more than $9 million, giving it funding to commence construction of the mine camp, road works and complete geotechnical and plant-site sterilisation drilling.
A bankable feasibility study for the proejct is due to be completed by the end of the June quarter.
Managing director Stephen Ross said the raising would allow the company to finalise a debt facility to finance the project.
Mr Ross said project financing discussions were progressing, with strong interest from a number of debt providers.
“Pre-development activities will also now commence in earnest, alongside a resource drilling program at Shamesai and Obdilla,” Mr Ross said in a statement.
At close of trade today Manas shares had slipped 15.3 per cent, trading at 11 cents.
