Apex Minerals is seeking to raise $11.38 million with a placement and rights issue.
The Wiluna gold miner is undertaking a placement of 28 million fully paid ordinary shares in the issued capital of the company at 9 cents to raise $2.52 million.
The placement will be followed by a conditional partially underwritten one-for-two non-renounceable rights issue to existing eligible shareholders to raise up to approximately $8.86 million (before costs) at an offer price of 8 cents a share.
The company said it was seeking to raise a minimum of $6 million from the rights issue, which when combined with the proceeds from the placement, are planned to be used towards repayment of short term debt ($4.5 million), payment of creditors and costs of the issue.
If the maximum amount of $8.86 million is raised by the rights issue, the additional $2.86 million will be used for creditor payments and as general working capital.
"Since the new management team was appointed in April we have seen a tremendous improvement in increasing production while lowering costs, a trend which we expect to continue," Executive chairman Eduard Eshuys said.
Apex shares had been in a trading halt pending the announcement and closed today up 10 per cent, one cent, to 11 cents.