Auteco Minerals Ltd (ASX:AUT) is trading higher after receiving firm commitments to raise around $30.4 million in a placement with funds to accelerate exploration at the flagship Pickle Crow Gold project in Ontario, Canada.
The placement, which comprised the issue of 225 million new shares, has been well supported, including by two offshore global resource specialist funds.
Shares are up more than 26% to 19 cents, which represents a new 12-year high.
Proceeds will assist with ongoing capital requirements as well as enable Auteco to expedite resource growth with a second diamond drill rig schedule to arrive at Pickle Crow later this month.
Executive chairman Ray Shorrocks said: “The significant support we have received from two offshore global resource specialist funds, along with support from our existing shareholders is extremely pleasing."
Numerous high-grade, walk-up targets have been identified for drilling as the company works towards a resource update this year.
Auteco recently reported a maiden inferred resource at Pickle Crow of 830,000 ounces at 11.6 g/t gold.
Shorrocks said: “Following our maiden inferred resource at Pickle Crow, we are very excited to accelerate our exploration program.
"We have identified numerous high-grade gold targets to test and expect that we will be able to provide a resource update later this year.”
New shares have been issued under the placement at an issue price of 13.5 cents, which represents a 10% discount to the last traded price on July 3.
Canaccord Genuity (Australia) Limited acted as sole lead manager and underwriter to the placement.