Magnetic Resources raised around $4.8 million via a share placement to fund the development of its Laverton gold projects.

About 6.66 million new shares were issued at 72 Australian cents apiece, representing a 10% discount on the closing price.

The funds will be used for activities such as an infill and extension drilling program, completion of early work studies, the initial feasibility study, and initial preparations for mining.

The company will have over $6 million in cash to progress its gold projects upon completion. Settlement of the shares is expected on Sept. 27, with allotment on Sept. 28.