UPDATE 1-CGA Mining to raise C$74.8 mln in bought deal

* Says to repay debts and fund exploration

* Deal at 12 pct discount to Monday's close



Jan 19 (Reuters) - CGA Mining Ltd said it would raise gross proceeds of C$74.8 million ($72.55 million) in bought deal financing to fund exploration at the Masbate gold project, located in the Philippines, and repay debts.

CGA said a syndicate of underwriters, led by BMO Capital Markets, will buy 34 million shares at C$2.20 per share, which is a discount of 12 percent to their Monday close.

The company said it also granted underwriters the option of buying up to an additional 15 percent of the offering.

Shares of CGA were down 6 Canadian cents to C$2.44 in late afternoon trade on the Toronto Stock Exchange. They touched a high of C$2.48 earlier in the day.

($1=1.031 Canadian Dollar)

(Reporting by Abhiram Nandakumar in Bangalore; Editing by Aradhana Aravindan) Keywords: CGAMINING/ ([e-mail]; within U.S. [phone]; outside U.S. [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.