Reed announces $10m capital plan

Reed Resources has launched a $10 million placement and share purchase plan, to boost working capital as it moves towards start-up at its Meekatharra gold project.

Reed today announced an $8 million placement to institutions and a $2 million share purchase plan for existing shareholders, both priced at 18 cents per share.

The miner is also in the process of finalising a $19 million debt facility with international bank Credit Suisse.

“Reed is pleased with the very strong support for the capital raising,” managing director Luke Tonkin said.

“The additional working capital allows the group to maintain appropriate working capital levels during the commissioning of the Meekatharra gold project, which is scheduled for December.”

The placement was lead managed by Azure Capital, while the purchase plan is underwritten by Azure, conditional upon completion of the placement.

At 10:00AM, WST, Reed’s stock was steady at 19 cents.