JOHANNESBURG (miningweekly.com) – Australia-based Avalon Minerals has unveiled plans to raise $3.3-million, comprising a $2.3-million share placement and a $1-million share purchase plan (SPP), to advance its projects in Ecuador and Finland.
The proceeds of the placement and the SPP will mainly be used to fund exploration at the ASX-listed company’s Bramaderos gold/copper project, in southern Ecuador, where Avalon has the right to earn a majority interest in the concession from TSX-V-listed Cornerstone Capital Resources.
Avalon believes Bramaderos has strong potential to host large-volume gold and copper mineralisation.
The company aims to start a drilling programme at Bramaderos in the fourth quarter of this year. Permitting for the drilling programme has already started.
Avalon will use a component of the funds raised for a 1 500-m diamond drilling programme at the Satulinmäki gold prospect, in southern Finland. This is a follow up on previous drilling that delivered 23.5 m at 3.3 g/t gold, and to the recent geophysical survey that pointed to the existence of a larger gold system.
The company also owns the Viscaria copper project, in Sweden, but spending is being kept to a minimum at the project, while discussions are ongoing about potential partnerships.