Gold and mineral explorer Golden Rim Resources has announced a $3 million placement, managed by Sprott Private Wealth, for exploration in Burkina Faso and working capital.
Golden Rim says exploration will be focused on Korongou, which covers 16 kilometres of the Samira Hill greenstone belt near Niger in western Africa.
The company also holds 185,000 ounces of inferred gold resources at its Balogo project.
Sprott is a North American asset management firm, representing an opportunity for Golden Rim to extend its shareholder base into North America, the company said.
The deal is contingent on shareholder approval, due diligence and approval of a conversion of an existing loan agreement with Aurora Minerals.
In May, Golden Rim signed a $3 million loan agreement with Aurora, $1.65 million of which has been converted to shares following shareholder approval in July.
Under the raising, between 230 million and 275 million ordinary shares will be issued at a price of 1.1 cents each, with options also attached at a rate of two for one.
Golden Rim was up 18.2 per cent to 1.3 cents at the time of writing.