Manas to raise $5m for gold project

Perth-based gold miner Manas Resources has launched a $4.7 million capital raising plan to fund pre-development work at its Shambesai gold project in southern Kyrgyzstan.

The discounted placement will be conducted by the way of a private placement of 77 million shares at 0.7 cents each to raise $0.54 million, followed by a non-renounceable entitlement issue on a one-for-one basis to raise a further $4.17 million.

Around 595.8 million new shares will be offered under the rights offer, also at an issue price of 0.7 cents per share.

GMP Securities has been appointed as lead manager for the placement issue and the rights offer, and will also be appointed as underwriter for the rights offer.

A fee of 6 per cent of the total funds raised under the placement issue and rights offer will be payable to GMP.

The placement issue will be completed on or before July 17, 2015.

Manas shares fell 33 per cent to 0.6 cents at 9:50am.