Shares in Gunns remain suspended from trading on the Australian Securities Exchange (ASX) while the woodchipper continues its plans to raise money.

Shares in Gunns have not traded since March 9 when they were at 16 cents.

“Further to Gunns Ltd’s announcement on 26 March, 2012, the company confirms it is proceeding to formulate an equity offer as detailed in that announcement,” Gunns said in a statement on Monday.

“The company will provide a further update to the market on 10 April, 2012.

“The company requests that its suspension from trading continue until the details of the proposed equity raising, and associated document preparation have been finalised.”

Gunns said on March 26 that it may seek to raise about $400 million to cut debt and support the development of its $2.5 billion pulp mill project.

The amount of the proposed new capital raising is much larger than the $280 million capital raising previously proposed by Gunns, which was derailed when New Zealand billionaire Richard Chandler pulled out on March 9.

Gunns had said on March 26 that some key elements of the new proposed capital raising, which could involve a placement of shares to new investors, were still to be finalised.