Rimfire Pacific (ASX: RIM) has raised $2.22 million through a placement of 60 million shares at $0.037 in order to fund major projects, with the offer closing early due to oversubscriptions.
The company plans to use the funds to launch a reverse circulation drill program at the Sorpresa Gold Project later this month.
Funds from the placement will also be allocated to enable the continuation of work at the company's platinum project areas.
John Kaminsky, executive chairman, said "we have more than 2,000 metres of reverse circulation drilling focussed on well defined gold with an underlying gravity feature.
"Seeing how the Sorpresa area performs in the reverse circulation drilling, given the encouraging gold encountered in the near surface bedrock in the last six months, is an important milestone for the company."
Patersons Securities acted as Lead Manager for the placement which had a strong demand for the issue and the offer being oversubscribed.
An exploratory reverse circulation drill hole at Sorpresa from 2008 had an intersection that included; 13 metres at 1.59 grams per tonne (g/t) gold, 8.7g/t silver and 0.53% lead, including 6 metres at 2.47g/t gold, 14.7g/t silver and 0.95% lead.
Sorpresa lies one kilometre outside of Fifield, New South Wales.