Richland Resources PLC (LON:RLD) has raised £1mln via a placing of shares at 0.75p.
The proceeds will pay for the final stage of the ramp-up programme for the Capricorn Sapphire Mine in Queensland, Australia.
"The funds will also allow us to implement our long-term sales model through our own beneficiation channels,” said chairman Ed Nealon.
“The pathway to achieving operational break-even and the mine becoming cash flow positive will be underpinned by our recently agreed and announced beneficiation partnerships.
“The ability of Richland to leverage margins through the consistent supply of fully certificated and beneficiated sapphires to both distributors and retailers is envisaged to become a core part of the company's revenue model."
In Tuesday’s announcement, Richland said in the two months to the end of November, production was 270,000 carats of sapphire and corundum per month, generating US$250,000 per month.
Additionally, 17,000 tonnes per month of sapphire-bearing alluvial gravels were extracted and processed at an average grade of approximately 14.5 carats.
The mine's total operating costs have fallen to 85 cents per carat from US$2.10 in the first quarter of the year.
*In addition to the placing, Richland is issuing stock to settle a £394,000 (US$500,000) loan facility.