Mariana Resources (LON:MARL) has raised £2.7mln through a placing to drive exploration forward in Peru.
The AIM-listed explorer issued 59.5mln shares at 4.5p each – a discount to Thursday’s closing market price of 5.35p – with the funds going towards work on its two Peruvian copper/gold projects, Condor de Oro and Soledad.
Mariana is carrying out a 1,500-metre drill campaign at the former with more assay results due out in the next few weeks.
It plans to start drilling at Soledad in the first half of 2014.
The company shifted its focus earlier this year from Argentina, where the attitude towards foreign investment has become less friendly since the nationalisation of oil firm YPF.
Mariana still has some exciting assets in Argentina, but has reined in spending there until investor sentiment improves.
Chief executive Glen Parsons said: “Mariana has made a transformational move into Peru this year and I am delighted to have secured this funding from our investors illustrating their continued support for our two new potentially company-making projects in Peru.
“With first drill results from our flagship Condor de Oro project indicating multiple phases of mineralisation in a large intrusive system, we look forward to the potential of continuing our exploration programme of this exciting porphyry-related gold-copper-molybdenum system into 2014.”
The shares fell 14% to 4.6p on the news.