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).
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.
Permitting 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.