SINGAPORE - Anchor Resources plans to raise gross proceeds of $1 million through a private placement of about 43.5 million new shares with Gao Jingxian, a private investor, at an issue price of 2.3 cents per share.

The private placement represents about 4.15 per cent of total issued shares in Anchor Resources, a mineral explorer for gold and base metals, as at Dec 12 and will represent about 3.99 per cent of the enlarged share base.

In a filing with the Singapore Exchange, Anchor Resources said: "The placement is undertaken to procure general working capital for the group as part of the group's cash-flow management strategy."

Ms Gao was introduced to the company by a certain Li Lai Chun, to whom Anchor Resources will pay a fee of S$50,000 in cash, subject to the company receiving such proceeds.

Net proceeds from the placement, after deducting expenses of about $80,000 (which includes the fee paid to Mr Li, the introducer) will be about $920,000.

"Pending the deployment of the net proceeds, such proceeds may be deposited with banks and/or financial institutions, used for investment in short-term money markets instruments and/or marketable securities and/or used for any other purposes on a short-term basis, as the board may, in their absolute discretion, deem appropriate in the interests of the company," Anchor Resources said.

The placement shares will be issued under Anchor Resources's general share issue mandate, which was approved by company shareholders at an annual general meeting held in April.