SolGold plc (LON:SOLG) is set to receive up to US$20mln in investment from Maxit Capital, via a private placing to continue exploration at its Cascabel property in Ecuador.
Maxit agreed to subscribe for up to 238.47mln shares, or a maximum of 19.99% of the capital.
SolGold shares rose over 4% to 3.20p in London.
The issue price for the shares is yet to be determined but will be made by Maxit, no later than five business days before the closing date of the financing. SolGold expects it to be at a premium to the current share price.
The net proceeds will be used for general corporate purposes, including working capital, and continued exploration and development of the 85% owned Cascabel project.
Maxit will also be entitled, on closing, to a success fee of 6% of the gross funds raised and to be issued warrants.
These warrants will be to subscribe for shares equal to 6% of the placing shares, half of them exercisable at 14p and half exercisable at 28p, with a 24 month exercise period.
Earlier this week, the firm said evidence was mounting at the Cascabel Copper-Gold porphyry project in Ecuador, showing it as a site, which is a world-class Tier 1 prophyry property.