Paramount Mining Corporation has raised AUD 283,500 to support ongoing development activities at its Gunung Rosa Project in West Java through a share placement to London based investors.

The company issued 4.05 million new shares priced at AUD 0.07 each under the "excluded offer" provisions of section 708 of the Corporations Act 2011 and equivalent provisions in overseas jurisdictions.

Paramount Mining has been progressing the brownfields Gunung Rosa gold-silver-base metals project in Indonesia at speed, and recently delivered a new total Inferred Resource of 634,000 gold ounces with significant silver and base metals credits.

Metallurgical studies have indicated overall gold recovery at 86%, with 82% reporting to bullion.

Paramount Mining has already outlined a development plan for Gunung Rosa, which includes refurbishing the mine to operate under the existing valid Mining License in the style of Kingsrose Mining's successful Way Linggo project.

The plan is to initially produce 30,000 to 35,000 ounces of gold from existing development drives by mid to late 2014 with access from declines at a cash cost of under USD 500 a gold ounce placing Paramount Mining in the lowest quartile of producers.

Following this Phase I production it is expected that the mine will be expanded to at least double this production rate from 2015-2016 onwards given the ongoing exploration program is identifying further potential resources at surface.