Avalon Minerals is set to raise around $3.3m to fund exploration at the Bramaderos gold-copper project in southern Ecuador.
Around $2.3m will be raised through a share placement and $1m via share purchase plan (SPP).
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Micro-cap specialist Acorn Capital subscribed to the placement and is expected to become a significant shareholder in Avalon once it is closed.
Avalon owns Bramaderos concession in a partnership with Cornerstone Capital Resources and has the right to earn a majority interest in the project.
The company intends to undertake exploration across several prospects within Bramaderos, which is said to have the potential to host large-volume gold and copper mineralisation.
Once the exploration programme has been completed within five months, the company aims to start a maiden drilling programme in the fourth quarter of this year.
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By GlobalDataPermitting for the drill programme has already started and involves an environmental impact assessment, as well as stakeholder meetings.
The company further indicated that a portion of funds raised will be used to carry out works as part of a 1,500m diamond drilling programme at its Satulinmäki gold prospect in southern Finland.
Previous drilling at the Finnish project delivered 23.5m at 3.3g/t gold. A recent geophysical survey determined the existence of a much larger gold system at the project.
Avalon also intends to direct a component of the funds towards working capital needs.
In addition, the company is engaged in discussions with several parties regarding potential partnerships for its Viscaria Copper Project in Sweden.
