Red Gum Resources (ASX:RGX) has topped up cash proceeds after...

Red Gum Resources (ASX:RGX) has topped up cash proceeds after raising $0.6 million from a placement and a convertible loan.

It also has a non-renounceable rights issue in its sights to raise a further $0.7 million at $0.035 per share which could be underwritten by a Perth broker Patersons.

The placement to sophisticated investors of 2.8 million shares at $0.035 per share was made to sophisticated investors while the convertible loan is for $490,000 at a 12% coupon until converted at $0.035 per share.

The rights issue is on the basis of eleven new shares for every twelve held.

Red Gum is looking to divest mineral assets in Chile and Peru to look at opportunities outside the resources sector.

It had earlier shelved a travel services transaction.