Landore Resources Ltd (LON:LND) has raised £1mln (C$1.72mln) through a placing and subscription of shares at 0.7p each.
The new shares represent approximately 11.87% of the company's enlarged issued ordinary share capital.
The proceeds will allow Landore to complete a 4,500 metre drilling programme at the BAM gold deposit.
The idea is to advance the base case in-pit mineralisation of 515,000 ounces gold to in-pit mineralisation of over 800,000 ounces gold.
The company will also undertake ground geophysics and geochemistry testing to define exploration targets along the strike from the BAM gold deposit.