Great Southern Copper PLC (LSE:GSCU) has raised £2.5 million through a private placing to fund expanded exploration at its Especularita project in Chile.
The placing sees 99.64 million new shares priced at 2.5 pence, a 10% discount to the recent volume-weighted average price.
Proceeds will be used to accelerate drilling and target evaluation across the company’s key prospects, including the copper-silver discovery at Mostaza, gold porphyry targets at Viuda and copper porphyry mineralisation linked to the Colorada lithocap.
Three rigs are currently active at the Cerro Negro prospect under the Phase III drilling programme.
Chief executive Sam Garrett described the raise as “a major milestone", and said that it highlighted institutional and long-term shareholder support for the company’s exploration plans.
"This is a real show of confidence in the direction of the company, its projects and the management team," he said.
"This new funding allows Great Southern Copper to advance its exploration efforts at Especularita, focusing on our high-grade copper-silver discovery at Mostaza. In addition, the funds will be used to expand its exploration and drilling programmes at Viuda, targeting porphyry gold mineralisation as well as testing new prospects across the wider project area."
"We greatly appreciate the ongoing backing of our long-term holders and welcome the support shown by our new investors."