- Keras Resources, the Australian gold mining company, has raised GBP1,250,000, gross, through a placing of 113,636,364 new ordinary at 1.1p apiece to new and existing shareholders.

Proceeds will be used to fast-track production at the high grade Prince of Wales underground mine located 30km north of Kalgoorlie where the company has a five year tribute agreement with Paddington Goldfields and the Lindsay's mine located 65km NNE of Kalgoorlie where Keras has a profit share agreement with KalNorth Gold Mines Limited.

Managing director Dave Reeves said: "We are delighted to have received such strong support from our shareholders for this Placing. With these funds secured we can now accelerate production at these two key assets in the portfolio, namely the Prince of Wales and Lindsay's mines.

"Given that our tribute agreement over the latter is for a period of five years, it is important for us to fast-track its development as quickly as possible, so that we can fully maximise its cash generation for the Company. Together with ore production from Lindsay's, we will have a solid platform to secure additional tributes or acquisitions.

"The company has opted to raise additional capital now, rather than wait for the cashflows from the open cast mining operations at Grants Patch, to take advantage of the favourable environment for gold mining companies in Australia at present, and to bring forward the additional cashflow from these two key assets."

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