* Proceeds to fund Indonesian gold project Toka Tindung
* To sell 102 million shares at 30 pence per share
* Shares rise 3.3 pct (Adds details, share price)
LONDON, Feb 26 (Reuters) - British gold miner Archipelago Resources AR.L said it was planning to raise 30.6 million pounds ($46.9 million) via a placing to fund the development of its Indonesian gold project.
The AIM-listed company said on Friday it intended to sell around 102 million new shares at a price of 30 pence per share, the same price as which they closed at on Thursday.
Archipelago said the proceeds of the placing, which was oversubscribed, would provide around 80 percent of the funds required to complete the construction of the Toka Tindung Gold Project in Indonesia.
The new shares, expected to be admitted to trading on AIM on or around March 4, will represent about a quarter of its issued share capital.
The company said it would look to fund the balance of the cost of construction, estimated at 7 million pounds, by further placings, including a placing related to the company’s proposed listing on the Australian Securities Exchange.
The company initially had to delay the project, in which it owns an 85 percent stake, after environmental concerns from the local government. It received approval last October.[nJAK174783]
Archipelago said it aimed to achieve production at the project by the fourth quarter of 2010 and it would also undertake exploration at the project in the second half of the year.
Shares in Archipelago were up 3.3 percent at 0832 GMT valuing the company at 121.2 million pounds.
(Reporting by Sarah Young; Editing by Lorraine Turner)