Perseus scraps capital raising plans

Shares in Balcatta-based Perseus Mining Ltd have sagged as the company terminates capital raising discussions with a Sydney-based stockbroking firm.

On an overall strong day for resource stocks, shares in Perseus, which today came out of a trading halt, dropped 10 per cent to a low of 37 cents before rallying slightly to last trade at 39c at 13:18 AEDT.

Perseus said it had been approached by the unnamed firm which had wanted to place securities with its clients.

"However, those negotiations were not concluded to the Company's satisfaction and the Company has terminated discussions," Perseus said.

The stock currently has cash assets of $11.3 million, according to its September quarterly report.

"This is sufficient to satisfy its current budget and the termination of the abovementioned negotiations is of no detriment to the Company going forward," it said.

Earlier this month, the company said its African gold project is estimated to have a capital cost of $US175 million.