At $1.35 per share, the placement represents just under 15% of the company’s total issued capital of 188.8 million shares.

Goldfields has been spending heavily this year as it moves to rationalise the region north of Kalgoorlie in Western Australia.

Its acquisition of Gilt-Edged mining earlier in the year and successful tender for a 49% stake in the Mungari West Joint Venture near Kalgoorlie have cost it about $50 million. Cleaning up minority shareholdings in its majority-owned subsidiary Goldfield’s Kalgoorlie cost a further $16.6 million.

“The proceeds raised by the placement will be used to reduce the net debt of the company and thus provide Goldfields with more flexibility to proceed with further rationalisation in the Kalgoorlie region,” managing director Peter Cassidy said.

Goldfields expects to beat its 1998-99 record net profit of $21.5 million when it releases its results for the year ended June 30 at the end of this month.