Keras Resources raises £1.25m in placing

Keras Resources was preparing to push ahead with developments at two projects on Friday, having raised gross proceeds of £1.25m in a placing.

A total of 113,636,364 new shares of 0.1p each were placed with new and existing shareholders at a price of 1.1p each.

The AIM-traded Australian gold miner said there was significant shareholder support for the placing, enabling it to accelerate the development of its portfolio.

Keras said the proceeds will be used to fast-track production at the high grade Prince of Wales underground mine, 30 km north of Kalgoorlie, where the company holds a five year tribute agreement with Paddington Goldfields.

It will also be used at the Lindsay's Mine, 65 km north-northeast of Kalgoorlie, where Keras holds a profit share agreement with KalNorth Gold Mines.

"We are delighted to have received such strong support from our shareholders for this placing,” said managing director Dave Reeves.

“With these funds secured we can now accelerate production at these two key assets in the portfolio, namely the Prince of Wales and Lindsay's mines.”

Reeves said given their tribute agreement for the former was for only five years, it was important to fast-track development as quickly as possible to maximise cash generation.

“Together with ore production from Lindsay's, we will have a solid platform to secure additional tributes or acquisitions.

“The company has opted to raise additional capital now, rather than wait for the cash flows from the open cast mining operations at Grants Patch, to take advantage of the favourable environment for gold mining companies in Australia at present, and to bring forward the additional cash flow from these two key assets,” Reeves concluded.