Newcrest raises $750m

Australia's largest gold miner, Newcrest Mining, has completed an institutional placement of shares to raise approximately $750 million.

Australia’s largest gold miner, Newcrest Mining, has completed an institutional placement of shares to raise approximately $750 million.

The miner said the share sale would enable them to repay debts, fund expansions and allow for possible acquisitions.

According to an ASX announcement released by the company, the initial placement size of $500 million was significantly oversubscribed, with strong demand from domestic and international institutions.

Media analysts said strong demand was courtesy of recent high gold prices.

Gold reached $US930 on Sunday night and is tipped to rise to $US1000 an ounce within the next few days.

Financier Kevin Tomlinson said investors were piling back into gold, because it is seen as a safe haven in times of turmoil.

In particular, he said, President Obama’s bailout package helped drive up the gold price.

Newcrest Mining’s trading halt was lifted at market open yesterday.

Newcrest has also said they will offer shareholders the opportunity to participate in a non-underwritten Share Purchase Plan which will allow eligible shareholders to subscribe for up to $5000 worth of Newcrest shares without incurring transaction costs.

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