Metminco Ltd (ASX:MNC) has lodged a prospectus to raise up to $1.25 million through a renounceable 2-for-5 rights issue priced at 0.3 cents per share.
The funds raised will be applied to the advancement of the Quinchia Gold Project in Colombia.
The record date for determining rights is Friday 30 November 2018 and the offer will close on Friday 14 December 2018.
READ: Metminco focused on its portfolio of gold assets at Quinchia in Columbia
The Quinchia Gold Project comprised the 0.88 million ounce gold Miraflores deposit and the 0.92 million ounce Dosquebrados deposit.
The project has good expansion potential recently highlighted by drilling at the Tesorito Prospect where diamond hole TS-DH-07 intersected 253 metres at 1.01 g/t gold from surface.
All these deposits occur within a 2-kilometre radius of the location of a planned gold plant at Miraflores.
Chuscal porphyry target yet to be tested
The undrilled Chuscal gold target which, along with Tesorito, is the second significant gold porphyry target within the Quinchia Gold Portfolio, features a large geochemical anomaly.
Furthermore, the target lies over an area with artisanal mining which has indicated highly encouraging underground channel sample grades.
Joint venture discussions advanced
Discussions are well advanced with AngloGold Ashanti to formalise a farm-in/joint venture agreement over the Chuscal gold target.
A market update is anticipated in the near-term.
On successful completion of the negotiations, it is intended to rapidly undertake additional soil geochemical, channel sampling and geophysics to prepare for drilling at Chuscal.