raise a$11.5 million through the issue of 57.5

Manas Resources (ASX: MSR) will raise A$11.5 million through the issue of 57.5 million shares at 20 cents each.

Funds will be used to advance its 100%-owned gold projects in the Kyrgyz Republic.

The company now has over A$12 million to complete the feasibility study being conducted at the high-grade, high-margin Shambesai Gold Project.

Manas has more than 20,000 metres of drilling planned for next year.

The placement was heavily oversubscribed and completed at twice the price of Manas?s previous issue, and above the previous closing price of 19 cents.

Cornerstone investors Macquarie Bank Limited, Asian Lion Limited and Lion Selection Group Limited, as well as Manas?s major shareholder, West African gold developer Perseus Mining (ASX: PRU) all supported the capital raising.

The share placement is in two parts, with tranche 1 for 13.4 million shares ($2.68 million) settling next week.

Following shareholders? approval, tranche 2 for the balance of 44.1 million shares ($8.82 million) will be settled in late January 2011.

MSR shares rose 21% to 23 cents in trading this morning.