Ramelius to raise $16.3m for new project

Ramelius Resources is forging ahead with exploration and development at its newly-acquired Vivien gold deposit near Leinster, launching a $16.3 million capital raising to fund the activities.

The Perth-based gold miner today announced a one for four non-renounceable share issue for existing stockholders, priced at 18 cents per share.

The funds will be added to a recent $5 million placement to Canadian fund manager Sprott Asset Management, which was priced at 20 cents per share.

Managing director Ian Gordon said the proceeds would ensure the company had a robust cash balance through the acquisition and the development of the project.

Ramelius said earlier this month it would pay $10 million for the 154,000 ounce project, located near Gold Field’s Agnew mine in the northern Goldfields.

At 11:10AM, WST, Ramelius shares were down 10 per cent, at 18 cents.