Hannan Metals Ltd (TSX: HAN, OTCPK: HANNF) is set to raise up to C1.005mln via a placing, it said.
It will issue up to 6.7mln units at 15 cents a throw for gross proceeds of up to $1,005,000 and plans to use the net proceeds to fund exploration at its Clare Project in Ireland, as well as for general working capital and corporate purposes.
Each unit consists of one share and one share purchase warrant. The latter entitles the holder to purchase one further share of the firm at an exercise price of C$0.25 for three years from closing.
Last month, Hannan said it had discovered new lead and zinc mineralisation in an outcrop around 600 metres north from the company's Kilbricken zinc-lead-silver resource in County Clare.
Michael Hudson, Hannan Metals chairman and CEO, said it was "extremely uncommon" to find outcropping mineralisation in Ireland.
Most surface occurrences were located during Victorian times, and it was only a recent forest-clearing programe which allowed our geologists to make this promising new discovery at Finanagh, he said.