Shares in Landore Resources Ltd (AIM:LND) rocketed almost 50% as a Portuguese mining house injected £1 million and put its own man in charge as chief executive.
Luso Global Mining (LGM), based in Porto and an arm of Mota-Engil (currently valued at €1.2 billion), is taking its stake for 2.4p per share as part of a £3.68 million funding round.
Two other investors are injecting a combined £1.35 million, while Alexander Shaw, LGM’s chief executive, will become Landore’s new CEO.
Landore’s flagship asset is the BAM project in Ontario, Canada, where gold has become the focus.
Money raised in this round will be used to increase the size of the existing resource, target high-grade areas of the deposit and upgrade inferred resources to indicated.
Glenn Featherby, interim CEO, said: "We are delighted to have secured the support of LGM as a cornerstone investor to this substantial subscription alongside several well renowned high net worth individuals.
"This fundraising is potentially transformational for the company and serves to demonstrate the inherent value and potential of our existing high-quality asset portfolio.
"In particular, it will provide a runway to enable us to swiftly commence our planned drill programme on our flagship BAM Gold Project at Junior Lake."
Shares issued in the subscription will account for around 49.56% of the issued share capital with LGM at 11.8%.
The subscription shares were issued at a discount of 15.8%.
Landore shares jumped 1.4p to 4.25p.