Mila Resources PLC (LSE:MILA) has raised £2 million through a conditional placing at 1p each, a small premium to Friday’s close.
Funds will allow Mila to carry out further gold exploration work alongside Liontown's lithium exploration in the northern part of the Kathleen Valley licence area in Western Australia.
“By capitalising on work permits and heritage surveys that the company expects to be granted in the near future, drilling costs will be significantly reduced, maximising drill metres and funds into the ground at this exciting gold project,” said the statement.
Mila, a gold explorer, recently signed a deal to allow Lionstown to explore for lithium at Kathleen Valley.
Several proposals to partner on other projects and funds have also been received by Mila and it has appointed Alastair Goodship, an exploration geologist, to assess both these and the existing portfolio.
Mark Stephenson, Mila’s chairman, commented: "Our gold exploration activities at Kathleen Valley have been encouraging, and, in tandem with the option agreement with Liontown to explore and fund the lithium exploration at the project, our initial asset has the potential to deliver significant value for Mila.
"Our immediate objective now is to push forward with our gold exploration work, specifically to fully understand the mineralisation dynamics, particularly along the unexplored north-western stretch.
“In addition, we will prioritise the assessment of deeper mineralisation layers.
"Furthermore, this fundraising provides the Mila team with the ability to evaluate and capitalise on new opportunities during what remains a difficult market for junior exploration businesses.”