Reed Resources has announced a $10 million capital raising for commissioning its Meekatharra gold project.
The company will raise the money via an $8 million placement to institutions and a $2 million share purchase plan for retail investors.
The raising will be priced of 18 cents and is underwritten by Azure Capital.
Managing director Luke Tonkin said the additional working capital would allow the group to maintain appropriate working capital levels during the commissioning of the Meekatharra gold project, scheduled for December.
Reed is also in the process of finalising a $19 million debt facility with Credit Suisse.
Reed shares were off half a cent, or 2.63 per cent, to 18.5 cents at 11.25am.