Golden Rim Resources Ltd (ASX:GMR) has received commitments from institutional and professional investors to raise around $3 million in a placement.
Existing shareholders will also be offered the opportunity to participate in a share purchase plan (SPP) to raise a further $1 million on similar terms as the placement.
Funds raised will be used for work programs at the Kouri Gold Project, which Golden Rim believes has significant potential for the discovery of further mineralisation.
The heavily oversubscribed placement consisted of around 116 million fully paid ordinary shares at an issue price of 2.6 cents per share.
Placement participants will be able to claim an offer of free options based on one free unlisted option for every two new shares subscribed for under the placement.
Options will be exercisable at 4 cents at any time within 24 months of the issue date.
The SPP for eligible existing shareholders will be offered on a first come, first served basis at 2.6 cents per share.
Golden Rim managing director Craig Mackay said: “The success of this capital raising is a testament to the quality of our 100%-owned Kouri Gold Project and we are very grateful for the support received from both existing and new investors.
“We are also pleased to give our shareholders an opportunity to participate on the same terms as the placement through the upcoming SPP.”
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A maiden mineral resource estimate of 1 million ounces for Kouri was released in May, with the deposit extending to only 90 metres below surface and remaining open at depth.
Mackay said: “We have been drilling continuously at Kouri for 10 months now with great success and remain confident of the significant further exploration potential within the Kouri licence area.
“Given the results of both our recent RC and auger drilling, we believe there is excellent potential to both substantially expand and add value to the existing mineral resource base at Kouri.
“The current fundraising allows us to proceed with the work we believe is required to rapidly progress the project, without delay.”