Westonia Mines to raise $6.1m through rights issue

West Perth-based gold explorer Westonia Mines Ltd has announced plans raise $6.1 million through a renounceable rights issue to shareholders, raising money for the company's Westonia Gold project.

Through the issue of over 61 million shares at 10c each on a one for four basis, the company further aims to fund the relocation of its Big Bell plant to the Westonia minesite, as well as rehabilitating the land on which it currently sits.

Completion of this process within the agreed, extended timeframe of 31 July 2007, will result in Westonia's $1.5 million performance bond being fully refunded.

Disassembly and relocation of the Big Bell plant will enable major components to be fully inspected and the associated refurbishment costs to be correctly estimated. Currently, the total cost for Big Bell plant disassembly, relocation and re-erection includes a $4.7
million provisional cost estimate for component refurbishment.

The offer is fully underwritten by Patersons Securities Ltd, with Ord Partners acting as auditor to the deal.

The prospectus will be dispatched on November 24, with the offer to close on December 8.