Resolute Mining falls on $55m raising

Despite a positive start following a near three-month trading hiatus, shares in Resolute Mining have closed down over 11 per cent following a $55 million capital raising, some $18 million short of its target.

Shares in the Perth-based explorer jumped 5.5 cents or 11.45 per cent to reach an intraday high of 53.5c in trade today before reversing those gains and then some to close at 42.5c, or 11.46 per cent down on its last traded price in October.

Nearly two months after it finalised details of a $72.5 million capital raising, the company last week announced it had raised $54.7 million.

Of that, $51.7 million was raised through a convertible notes issue while the balance was raised through a non-renounceable rights issue.

Funds raised will go towards the development of the company's flagship Syama gold mine in Mali.

"This raising was critical to the Company's development plans and is an excellent result given the state of the markets at the moment," Resolute chief executive Peter Sullivan said last week.