Reed Resources plans a fully underwritten $40 million capital raising to fund development of its Meekatharra gold project.
The company said it would undertake an entitlement offer of new shares at 20 cents each, which was a near 30 per cent discount to the explorer's closing share price yesterday at 28.5 cents.
The offer has been fully underwritten by Bligh Capital Partners.
Eligible shareholders will be entitled to subscribe for three new shares for every four shares held.
The company in February completed a bankable feasibility study for its wholly owned Meekatharra project and decided to proceed to mining.
Reed is targeting first gold production in the December quarter.
"The successful completion of this entitlement offer will be another important step in achieving our objective of pouring gold at Meekatharra by the end of this year," managing director Christopher Reed said in a statement.
Reed also holds lithium, vanadium, iron ore and nickel assets, all in Western Australia.
