Drummond Gold (ASX: DGO) has executed a Share Subscription Agreement with highly regarded resources private equity fund Resource Capital Fund to raise $350,000 for working capital.
Proceeds may also be used to identify and evaluate copper and gold opportunities.
Under the first tranche of the Share Subscription Agreement, Drummond will place 20 million shares to RCF or its nominee at an issue price of $0.002 per share to raise $40,000.
The second tranche, which is conditional on the company securing shareholder approval by 30 November 2013, will see the company issue 155 million shares to raise $310,000.
RCF is a US-based private equity group managing US$3.4 billion of resources assets through its four active private equity funds.
In the past quarter, Drummond had identified two controlling structures at the Sullivans Prospect of its Mt Coolon project in Queensland based on multi-element analysis and new interpretation of past drilling.
Further work, including geophysical modelling, has defined the structural extent which remains open at depth and possibly along strike.
It also confirmed the local extent to copper skarn mineralisation at the TPM Copper-Gold Magnetite Skarn remained incompletely tested while the regional extent was untested.
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