Gold miner CGA Mining Ltd (CGA.TO) (CGX.AX) increased its recently announced private placement and said it would now raise C$20 million ($17.97 million).

Haywood Securities, which is acting as the agent for the offering, has increased the amount of the private placement to 14.8 million shares from 12.6 million shares.

On Tuesday, CGA Mining said it planned to raise C$17 million through a private placement of its shares, which would be issued at C$1.35 each (A$1.54 equivalent). The offering is expected to close on or about June 12.

The proceeds, along with existing cash reserves, are proposed to be used to supplement working capital during the initial months of production at the Masbate Gold Mine. The Masbate Gold Project in the Philippines was constructed with first gold poured on May 12. It is currently forecast to produce over 200,000 ounces per annum.

CGA Mining shares closed at C$1.51 Tuesday on the Toronto Stock Exchange.

($1=1.113 CANADIAN DOLLAR) (Reporting by R. Manikandan in Bangalore; Editing by Anne Pallivathuckal)© Thomson Reuters 2009 All rights reserved