Kaiser Reef (ASX:KAU) is planning a $900,000 raise via a share placement at a price of $0.15 per share, which is about a 15% discount.

The gold producer and exploration company says the funds will be used to support the development of expanded production at the A1 goldmine in Victoria.

Kaiser Reef's board hopes the strategic placement will lead to an expanded high quality as long-term shareholder base, and improve access to sophisticated market investors beyond the interest currently experienced. 

Shares of Kaiser Reef are up 6% the past month.