JOHANNESBURG (miningweekly.com) – ASX-listed Citadel Resource shareholders have approved the $22-million capital raising recently undertaken by the company.

The extraordinary general meeting of shareholders was held primarily to approve about 25% of the share placement, which was in excess of the 15% limit. Shares totaling more than 213-million have been placed at 10,5 c a share, raising a total amount of $22,4-million before costs.

The company stated on Thursday that the placement was made mainly to Australian Institutional shareholders, with Petra Capital exclusively managing the capital raising.

The funds would be applied to the development of Citadel's gold heap-leach project at the Jabal Sayid project, in Saudi Arabia. The placement funds would be used to move into early gold production at the Jabal Sayid, and mining was planned to start at the end of this year, with first gold in the first quarter of 2010.

Development activities would continue on the copper project during this year with project financing targeting completion by year-end, and the award of the engineering, procurement, and construction management contract at the same time.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.