Mila Resources PLC (LSE:MILA) said it raised £212,000 via a placing to “build upon the highly successful Stage 1 drilling campaign at Kathleen Valley.”
The gold junior said it sold over 7mln shares at 3p each to supplement the £696,000 raised last month.
So far, the project in Western Australia's gold belt has returned promising intersections, it said, including 14.86 g/t of gold and 21.79 g/t silver from a depth of 209m.
Further drilling at the Coffey deposit at Kathleen Valley has “shown encouraging preliminary visual results from the Stage 2 drilling which identified three additional sheared zones.”
Proceeds from the fundraise will be used to advance work at the Coffey deposit, as well as for general working capital.
Plans for the money include drilling along strike at depth and also infill drilling, with the intention of publishing an updated and enlarged JORC Resource statement following completion of a Stage 3 drilling programme.
“We are well funded to continue our exploration at Kathleen Valley and look forward to the forthcoming assays in the coming weeks,” said executive chairman Mark Stephenson.
Investors in the placing, alongside shares, will receive one warrant per placing share for one new ordinary share at an exercise price of 4.8p per share for three from the date of admission.