Ampella Mining raises $41.9 million

Company News

Ampella Mining Ltd (ASX:AMX) says it has raised $41.9 million through a private placement to accelerate exploration at its Batie West project in West Africa.

The gold explorer advises the placement of 21.5 million ordinary shares at $1.95 per share represents an 8 per cent discount to the last closing price of $2.11.

The additional funds will add to around $12 million already held by Ampella, enabling the explorer to speed up exploration and also support general working capital.

Ampella currently has three rigs on site at Batie West and is expecting the forth to arrive shortly in the lead up to the resource upgrade at its Konkera deposit early next year.

The capital raising consisted of 12.5 million shares to US and European institutions and 7.5 million shares to Australian institutions.

Ampella advises that the private placement was several times oversubscribed.

Ampella Mining reported a profit of $5.57 million for the six months to 31 December 2009.