Perseus Mining (ASX/TSE:PRU) is conducting an institutional placement to raise about A$30 million.
The proceeds of the capital raising will be used to accelerate productivity improvements to increase gold production at Edikan Gold Mine in Ghana, working capital and bolster the balance sheet.
UBS is the lead manager while GMP is acting as the co-manager with the price of the placement to be determined by book build.
About $A7.5 million will be used for upgrading the efficiency of the Edikan Gold Mine processing plant, while another $7.5 million will be to gain access to the Eastern pits at the same mine.
The rest of the funds are to be used for working capital and shore up the balance sheet. The company had a total of cash and bullion of about $28 million as at 31 December 2013.
Promisingly, all-in-cash-costs for Perseus are trending lower toward life of mine forecast of US$937 an ounce.
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