Northern Irish explorer Galantas Gold Corp (LON:GAL) is planning to drum up £1mln (C$1.6mln) in a share placing from UK and Canadian investors and directors.
The company plans to use the funds to carry out works on its 100%-owned Omagh gold mine in County Tyrone, including increasing the level of mechanisation and improving underground infrastructure.
The underground gold mine at Omagh has commenced limited production of gold concentrate, from feed produced in development of the Kearney vein.
Galantas, which aims to keep some of the cash back for general working capital, said it will issue a maximum of 23.53mln shares at an issue price of 4.25p and 6.8 Canadian cents, with the shares subject to a hold period of four months plus one day.
As the processing plant at Omagh uses a non-toxic flotation process to produce concentrates, without the use of cyanide or mercury, Galantas noted that this satisfies strict environmental monitoring criteria set by the Northern Ireland regulatory authorities.