Manas launches $5m capital raising

Manas Resources will tap the market for around $5.5 million as it looks to progress activities at its Shambesai gold project in the Kyrgyz Republic.

Manas will undertake a partially underwritten entitlement issue to shareholders at 4 cents per share on a one-for-two basis with one free attaching option for every share issued.

Halcyon Corporate and Patersons Securities have been appointed joint lead managers to the rights issue.

The funds will be used for pre-development and development costs at the Shambesai project, including plant design, engineering and land acquisition.

The company's leading institutional shareholder Lion Selection Group, which holds a 7.7 per cent stake in the company, has indicated that it will subscribe in full for its entitlements.

"The funds raised will allow Manas to progress the development of Shambesai as we move towards finalising project financing and commencing construction next year," Manas managing director Stephen Ross said.

Manas shares were steady at 4.2 cents at the close of trade.