Golden Gate in halt over capital raising

Shares in Golden Gate Petroleum have been placed in a trading halt as the company completes a capital raising that could reap up to $6.32 million.

Last month the company announced it will embark on a share purchase plan that will see up to 79 million shares issued at a discounted price of eight cents each.

Shares in the Golden Gate last traded at 10c.

Additionally, the company said it is also considering a variety of other funding mechanisms including a sell down of certain assets and other funding alternatives to meet ongoing requirements.

Funds raised from the share purchase plan will go towards ongoing development work at its Bullseye oil project in the United States.