Canadian mineral explorer Seafield Resources Ltd said it will raise C$8 million ($7.92 million) to develop its Colombian gold project where it has seen recent successes, sending its shares up as much as 15 percent.
The news comes a day after the company, which has C$3.02 million in cash and equivalents as of Sept. 30, outlined plans to expand drilling at the Quinchia project after finding high grades of gold at one of the properties.
The project’s Miraflores property, which has an inferred resource of 776,000 ounces of gold, was where the Toronto-based company drilled its highest grade hole last week.
Drilling at the Dos Quebradas property is slated to start in a few months, while the Chuscal property is currently undergoing legal due diligence, according to the company’s website.
The company, which also has projects in Mexico and Ontario, Canada, said it will sell about 16 million units at 50 Canadian cents each.
Each unit will consist of one common share and one share warrant, which will entitle the holder to buy a share at an exercise price of 75 Canadian cents a share, the company said in a statement.
The newly issued securities are subject to a four-month hold period from the date of issuance, it said.
Seafield’s shares, which have tripled in value in the last one year, were trading up 9 percent at 60 Canadian cents on Thursday on the Toronto Venture Exchange. They earlier touched a high of 63 Canadian cents and were the second most traded stock on the Exchange. ($1=1.010 Canadian Dollar)