Ramelius to raise $5m for mine purchase

Ramelius Resources has secured an agreement to raise $5 million, which it will use to finalise its acquisition of the Vivien gold project from Gold Fields subsidiary Agnew Mining.

Ramelius announced today it would place 25 million shares at 20 cents each to Canadian fund manager Sprott Asset Management to raise the funds.

The miner said it would acquire the Vivien project for a total of $10 million, of which it has already paid $500,000.

Ramelius will pay off the acquisition in two tranches, the first $5 million tranche due before October 31, and the final $4.5 million due before June 30 next year.

The Vivien project is located near Gold Fields’ Agnew gold mine in the northern Goldfields.

Its current indicated mineral resource is around 580,000 tonnes at 8.3 grams per tonne for 154,000 ounces of gold.

At close of trade today, Ramelius shares were up 7.5 per cent at 21.5 cents.