Dacian Gold has raised nearly $31m (A$40m) through institutional share placement to ramp up new discoveries and advance growth projects into production in Western Australia.

The Australian firm completed a fully underwritten two-tranche institutional placement of nearly 142.9 million new fully paid shares. The shares were each priced at $0.22 (A$0.28).

The company plans to use the proceeds to advance drilling programme across the Mt Morgans and Redcliffe gold deposit.

The 300,000m drilling programme would mainly target new, base load opportunities at the deposits.

Dacian Gold managing director Leigh Junk said: “We are very pleased with the equity raising result and thank our existing shareholders for their ongoing support and welcome the new shareholders to the register.

“Dacian looks forward to pursuing its three-pillar growth strategy, focused on exploration success and advancing further deposits into production.”

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The Australian miner will also use the proceeds to advance the high-grade Redcliffe deposits into production.

Work includes completion of mining studies, site establishment and initial pre-stripping activities for the Hub, GTS and Nambi deposits.

A part of the funds raised in the placement will also be utilised for restarting underground production from the Greater Westralia Mining Area.

Moreover, Dacian Gold is planning to undertake a share purchase plan for raising an additional $3.87m (A$5m) at $0.22 (A$0.28) a share.

The company currently owns a 100% stake in the Mt Morgans Gold Operation near Laverton, Western Australia.

The mine yields nearly 110,000oz-120,000oz from the Heffernans, Doublejay, and Mt Marven deposits.