The placement process included issuance of 43,793,980 fully paid ordinary shares at a price of A$0.35 per share within company’s 15% placement capacity.

With this placement, the company is fully funded to undertake the development and production ramp-up at Talang Santo, according to the statement. In addition, the cash raised will also finance infill and resource extension drilling at the project.

Kingrose is set to commence the production at the mine by October 2013, intending to increase its annual output to the rate of 35,000 ounces by the start 2014 and a further increase to 50,000 ounces by the end of 2014.

Commenting on the developments, Kingrose Mining interim managing director Tim Spencer said that the funds raised would ensure achieving production and cashflow targets quickly, besides enabling a drilling program to enhance the resource inventory.

"Like the Way Linggo mine, Talang Santo stands to enjoy some of the lowest cost and most robust margins in the gold mining industry," said Spencer.

"With such a strong outlook, we wanted to ensure that the company had funding certainty and the shortest possible timeline to production and cashflow."

Second underground mine at the Way Linggo gold project, the Talang Santo operation is located 17 km from project infrastructure, and houses resources of 287,489 ounces of gold and 894,951 ounces of silver.