Western Australian firms Raisama Energy and Southern Gold have seen their share prices plunge on the Australian Securities Exchange after announcing capital raising plans to raise a combined $8.8 million.
Raisama announced today it had launched a $4.5 million share placement, priced at 9 cents per share, and a $1 million share purchase plan to raise $5.5 million.
Raisama managing director Jeff Steketee said the company was pleased with the response to the placement, which will fund an upcoming exploration program in Indonesia and New Zealand.
Patersons Securities acted as lead manager to the placement.
At Southern Gold, the company today launched a fully underwritten, non-renounceable rights issue to raise $3.31 million, the second stage of a previously announced $4.7 million capital raising plan.
The rights issue, priced at 4.3 cents per share, is underwritten by BBY Limited.
Funds raised will be applied to economic evaluation of the Cannon gold resource and development of exploration targets at Southern Gold’s Bulong project in Western Australia.
Southern Gold stocks dropped 14.5 per cent to 4.7 cents, while Raisama slipped 9 per cent, to 10 cents.
