July 23, 2009 / 5:54 PM / in 9 years

UPDATE 1-Romarco to raise C$30 mln by selling 34.1 mln shares

* Says to sell 34.1 mln shares at C$0.88 apiece

* To use proceeds for project development

July 23 (Reuters) - Canada’s Romarco Minerals Inc R.V said it plans raise about C$30 million ($27.30 million) by selling 34.1 million common shares at 88 Canadian cents apiece, mainly to fund the development of its gold mine in South Carolina.

The gold miner said it has granted the underwriters, led by Paradigm Capital Inc, an option to buy up to an additional 15 percent of the shares to cover over-allotments.

If the over-allotment option is exercised in full, the total gross proceeds from the offering would be C$34.5 million, the company said.

Romarco said it will use the net proceeds to fund the development of Haile Gold Mine, to purchase lands near the mine, for working capital and general corporate purposes.

Shares of the company were up 3 Canadian cents at 90 Canadian cents Thursday afternoon on the Toronto Venture Exchange. ($1=1.099 Canadian Dollar) (Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan)

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