September 21, 2010 / 1:52 PM / 9 years ago

UPDATE 1-Pacific Rim to raise C$3.3 mln via private placement

* Says to sell up to 19.6 mln units at C$0.17/unit

* To use proceeds for exploration work, litigation costs

* Shares up 5 pct

Sept 21 (Reuters) - Canadian gold miner Pacific Rim Mining Corp PMU.TO, which had raised going concern doubts, said it plans to raise about C$3.3 million ($3.2 million) through a private placement of up to 19.6 million units for funding exploration and litigation costs.

Each unit, which consists of one common share and half a non-transferable share purchase warrant, will be sold at 17 Canadian cents.

The company had earlier said it would continue to curb exploration at its key gold project in El Salvador until disputes with the government there over delays in issuing permits were resolved.

Pacific Rim, which raised going concern doubts for the second time in less than two months on Sept. 13, had also said that its ability to continue as a going concern is dependent on additional funding. It has had no sales for the past three years. [ID:nSGE68C0I3]

A top executive of the company had told Reuters in August that the company will fund the purchase of a mine in Panama via private placements of equity. [ID:nWNAB0835]

Vancouver-based Pacific Rim’s shares, which have gained nearly 6 percent in value since it first raised going concern worries in late July, were up 1 Canadian cent at 20 Canadian cents Tuesday morning on the Toronto Stock Exchange.

$1=1.029 Canadian Dollar Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal

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