Manas to raise $11.5m for gold projects

Perth-based gold company Manas Resources has announced plans for an $11.5 million capital raising to accelerate development and exploration at its gold projects in the Kyrgyz Republic.

Manas said that it will be issuing 57.5 million shares at 20 cents each.

This is above the company's previous closing price of 19 cents and double the price of Manas' previous issue.

The share placement will be completed in two parts, with Tranche 1 for 13.4 million shares ($2.68 million) settling next week.

Tranche 2 for the balance of 44.1 million shares ($8.82 million) is expected to settle in late January 2011.

In a statement to the Australian Securities Exchange, Manas Resources said that the capital raising was being well supported by Macquarie Bank, Asian Lion and Lion Selection Group, as well as Manas's major shareholder, West African gold developer Perseus Mining.

Manas Resources managing director Stephen Ross said the capital raising was an extremely positive step for the company.

"We will now have over $12 million after the capital raising to complete the Feasibility Study and commence development activities at our low-cost, high-margin Shambesai Gold Project," Mr Ross said.

"We can also now substantially increase our drilling activities with more than 20,000 metres of drilling planned for next year already."