Shares in aspiring gold miner Andean Resources shot higher today after the company's $97.5 million Canadian placement closed heavily oversubscribed.
The company placed 56.25 million shares at C$1.60 each through underwriters led by BMO Capital Markets.
The money will used to develop Andean's Cerro Negro project in Argentina to production.
Andean's chief executive Wayne Hubert said yesterday the company was committed to expanding the resource and developing the project.
"The financing risks at Cerro Negro have been significantly reduced," he said.
The company has estimated it will cost about $434 million to bring the project into production within three years.
Last year, a pre-feasibility study suggested a low-cost operation producing up to 350,000 ounces of gold a year with cash costs of $US198 per ounce.
Recent upgrades have pushed Cerro Negro's total resource to 2.6 million ounces of gold and 23.2 million ounces of silver.
Andean shares were up 15 cents, or 8.48 per cent, to $1.92 at 9.40am.
STUART McKINNON
