Crusader Resources Ltd. said Sept. 27 that it is raising a total of A$8.5 million in a "significantly oversubscribed" placement, with Patersons Securities Ltd. acting as lead manager.

The company will issue a total of 65,384,619 shares at 13 cents apiece in two tranches, with the first tranche expected to close by Oct. 4 and the second tranche subject to shareholder approval, with a meeting planned for November. Crusader noted that its chairman, Stephen Copulos, subscribed for A$750,000 under the offering.

Proceeds will be used to accelerate development of the Juruena gold project as well as to complete a bankable feasibility study at the Borborema gold project, both in Brazil.

Funds will also be used to repay the company's Macquarie debt facility and for general working capital.

Crusader also plans to undertake a share purchase plan to raise up to an additional A$1.5 million, with further details to be released shortly.