Guido Staltari's Saracen Minerals has gone into a share trading halt while it raises $20 million from a placement to institutional and sophisticated investors.

The company said also that Straits Resources had agreed to subscribe for $3 million worth of shares, or about 5 per cent of the post-placement Saracen, which is developing the Carosue Dam gold mine in WA's South Laverton region.

Saracen told investors in April that it was seeking a further $20 million in funding, including $7 million for the balance of its project funding for Carosue Dam and $6 million for feasibility work and reserves delineation.

Shares in Melbourne-based Saracen last traded at 21c.

SEAN SMITH