Ramelius Resources says it will launch a $15 million share purchase plan after completing a $40 million placement to institutional investors.
The gold miner announced today it had successfully completed the placement of 34.8 million shares at $1.15 per share to investors primarily in North America.
Ramelius also announced the launch of a share purchase plan, at the same price as the placement, where existing shareholders can purchse up to $15,000 worth of new shares.
The capital raising will do little to quell market speculation that Ramelius is weighing its options regarding a takeover of Perth-based junior Doray Minerals.
Ramelius took a 5.4 per cent stake in Doray midway through last month.
Ramelius said in a statement the funds from the placement and purchase plan would be applied to undertake a more aggressive development and expansion program at its Mt Magnet gold mine and “maintaining the company’s ability to explore asset level acquisition opportunities during the current sustained gold price environment.”
The company started mining at Mt Magnet in September, and was expecting first gold to be poured during the first quarter of next year.
Ramelius is also producing gold from its Wattle Dam underground gold mine.
At 10:17AM Ramelius’ stock was down 9.2 per cent, to $1.18.