Mila Resources PLC on Thursday said that it has raised £696,000 through a placing, which it will use to further fund exploration at the Kathleen Valley gold project.

Kathleen Valley is located in the Wiluna-Norseman gold belt in Western Australia, a recognised tier one mining jurisdiction home to a number of significant mining operations, including the adjacent high-grade Bellevue gold project.

The post-discovery gold exploration accelerator raised the money through a placing of 23.2 million new ordinary shares of 1.00 pence each, at a price of 3.00p per placing share.

It has also issued 524,000 broker warrants, exercisable at 3.00p for a period of three years.

The proceeds will be used to continue exploration activity at Kathleen Valley, following a ‘highly successful’ first stage of the drilling campaign, and ‘encouraging’ preliminary results from the second stage.

Drilling to date has focused on the Coffey deposit, which has returned ‘promising’ intersections including 6.6 metres at 14.86 grams per tonne of gold.

Funds will be used to complete a further 2,400m of drilling, in addition to environmental and heritage works, and for general working capital.

Executive Chair Mark Stephenson said: ‘We are confident that the Coffey Deposit, where activity is currently focussed, has all of the geological signatures of a robust gold resource. As a result, we are delighted that investors have supported us in this capital raise to keep up this work programme as we look to reveal the full potential of this project.’

Mila Resources shares were trading 6.9% higher at 3.10p each in London on Thursday afternoon.

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