Gold explorer Andean Resources is expected to announce a capital raising to help develop its flagship Cerro Negro project in Argentina.

Shares in the company have been placed in a trading halt while the company finalises the details.

They last traded for $1.77.

The company has estimated it will cost about $434 million to bring the project into production within three years.

Last year, a pre-feasibility study suggested a low-cost operation producing up to 350,000 ounces of gold a year with cash costs of $US198 per ounce.

Recent upgrades have pushed Cerro Negro’s total resource to 2.6 million ounces of gold and 23.2 million ounces of silver.

STUART McKINNON