announcement out - highlights

HIGHLIGHTS
• $8 million Placement to institutional and sophisticated investors.
• $2 million underwritten Share Purchase Plan to existing shareholders.
• Funds raised to maintain group working capital as Reed transitions into mid-tier gold producer.
Emerging Australian gold producer Reed Resources Ltd (ASX: RDR) (the Company or Reed) is pleased to announce a $10 million capital raising through a Placement and Share Purchase Plan (SPP). An issue price of $0.18 per Share has been fixed for both raisings.
The funds raised will be used to maintain appropriate levels of working capital as Reed moves into the commissioning phase of the Meekatharra Gold Project. As announced on 27 September 2012, Reed is in the process of finalising a $19 million debt facility with Credit Suisse. The funds raised will augment the Company’s cash reserves as this facility is finalised and made available.
Managing Director, Mr Luke Tonkin, said: “Reed is pleased with the very strong support for the capital raising. The additional working capital allows the group to maintain appropriate working capital levels during the commissioning of the Meekatharra Gold Project, which is scheduled for December.