Angel Mining (LON:ANGM) has raised £2.1 million through an institutional share placing.
In total, Angel is issuing 109 million new shares at 2 pence each. The funds have been earmarked for further development work at its two mine development projects in Greenland.
At the Black Angel zinc and lead mine the money will help it build infrastructure, a cable car is currently being installed to connect the mine entrance to the mine camp. At the Nalunaq gold mine, which poured first gold two weeks ago, the cash money will help Angel expand production towards its targeted 24,000 ounce annual run-rate by the second half of 2011.
"Cash generation from gold sales will grow quickly but this additional capital is required to build up production at Nalunaq and to finance the continued development of the high grade Black Angel lead-zinc mine, which is expected to commence production in early 2013."
“We anticipate that we will shortly be generating cash from Nalunaq and that will be an important source of finance for the development of Black Angel."
Last month Angel Mining revealed that gold production had begun at Nalunaq, although there were still some parts of the plant where further improvements could be made.
"The plant is designed to process 200 tonnes of ore per day and, subject to grade, it is expected to build up production to approximately 2,000 ounces of gold per month," said the company.