Montezuma Mining Company Ltd (ASX:MZM) has received commitments to raise $2.21 million before costs through the issue of 13 million fully paid ordinary shares at $0.17 per share.
The funds will be used to accelerate exploration at the company’s wholly-owned gold exploration properties at Yamarna and Holleton where previous work has identified the potential for large scale gold systems, and for working capital.
Justin Brown, executive director, commented: "We are very pleased with the level of support for the company’s ongoing gold exploration programs.
"The completion of this capital raising will allow those programs to be accelerated without depleting the company’s existing cash reserves, allowing us to take advantage of a very strong gold price environment."
Gold portfolio in Western Australia
All prospects at Yamarna lie along strike and within 20 kilometres of the 6.2 million gold ounce Gruyere discovery by Gold Road Resources Ltd (ASX:GOR).
Upcoming exploration includes accelerated reverse circulation drilling to test the Jatz gold target over 1.5 kilometres of strike of strong basement anomalism with grades of up to 19.1g/t gold.
Adding to the prospectivity of the area, The Yamarna Greenstone Belt is an under explored province, which is geologically similar to the Kalgoorlie Gold Belt.
The Holleton exploration licence covers 115 square kilometres of the Holleton Greenstone Belt, located 400 kilometres east of Perth.
The area was previously explored by Independence Group NL (ASX:IGO) who identified numerous gold anomalies through soil sampling.
Planning and permitting underway.
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