Tanami completes $12m capital raising

In an environment where companies are revisiting their capital raising plans, West Perth-based Tanami Gold NL has successfully completed its near $12 million entitlements issue.

News of the raising boosted the company's share price up 0.1c to 0.8c, a reversal of the share price slump it experienced when it announced the issue in September.

Some 87 per cent of shareholders participated in the raising where two new shares at 0.5c each was issued for every one share held. The shortfall was underwritten by major shareholder Allied Properties Resources Ltd.

Funds raised will be used to repay loans applied to the development of its Coyote gold project in the Kimberley.

Tanami has over 3.5 billion shares on issue.