Nagambie Resources (ASX:NAG) has announced the placement of 2,039,669 fully paid ordinary shares at $0.07 per share to Southern Cross Gold (ASX:SXG) to raise $140,000.

Nagambie Resources says the price represents a 6.1% premium to the last closing price of 6.6 cents and a 2.8% discount to the 15-trading-day volume-weighted price of $0.072.

It also says Southern Cross Gold?s shareholding in Nagambie Resources has now increased to 10% of its new total issued shares.

Nagambie Resources says the funds will be used to accelerate diamond drilling of high-grade, antimony-gold, Costerfield-Mine-style veins at its 100% owned Nagambie mine, and to general working capital.

Its share price closed up 12% today.