Gold miner CGA Mining Ltd said it plans to raise C$17 million ($15.10 million) through a private placement of its shares.

CGA mining said the shares will be issued at C$1.35 per share (A$1.54 equivalent). Haywood Securities is acting as the agent for the offering, which is expected to close on or about June 12.

The proceeds, along with existing cash reserves, are proposed to be utilised 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$1.64 Monday on the Toronto Stock Exchange. ($1=1.126 Canadian dollar) (Reporting by R. Manikandan in Bangalore; Editing by Anil D'Silva)