Fura Gems Inc (CVE:FURA) said it wants to raise up to C$10mln via a placement of stock in the company at 40 cents a share.
The cash will be used to complete the merger of ruby assets formerly owned by Mustang Resources and Regius Resources as well as funding the purchase of a prospecting licence in Mozambique.
Fura owns emerald and ruby assets in Colombia and Mozambique respectively.
The private placement is being overseen by Panmure Gordon here in the UK and Hannam & Partners in Canada.