Auteco Minerals Ltd (ASX:AUT) is undertaking a fully underwritten placement at an issue price of $0.135 per share to raise around A$30.4 million
Proceeds will be used to accelerate the exploration program at the company's flagship Pickle Crow Gold Project in Ontario, Canada.
The placement price represents a 10% discount to the last close price on Friday, July 3, of $A0.15.
Auteco has already started its maiden drilling program with nine holes drilled and a second drilling rig scheduled to arrive at site imminently.
Chairman Ray Shorrocks said: “Proceeds of the placement will strengthen the companys balance sheet and will allow Auteco to accelerate the drilling program at Pickle Crow, focusing on numerous high-grade targets that have been identified ready for drilling.
“Our current drilling program will be the first systematic exploration program at Pickle Crow in 50 years and we are very excited by its immense potential.”
The company will issue around 225 million new shares, representing 16.8% of the companys existing issued capital and new shares issued will rank equally with existing fully paid ordinary shares.