Junior mining stocks Orinoco Gold and Peak Resources have bolstered their coffers with capital raising that will raise a total of $6.1 million.
Orinoco Gold has raised $3.6 million before costs through a share placement of 14.5 million shares at 25 cents.
The gold miner advised that the placement was undertaken by Canaccord Genuity and targeted institutional and high-net worth investors.
The company recently discovered high-grade silver at its Cascavel project in central Brazil.
Managing director of Orinoco Mark Papendieck said the company was pleased with the level of interest in the placement.
“It has enabled us to raise a material amount of capital at a very difficult time in the market, putting us in a very strong position to move ahead aggressively with exploration activities in Brazil,” he said.
Rare earth miner, Peak Resources has raised $2.5 million in capital through a share placement of 20.8 million shares at 14 cents.
Shaw Corporate Finance and Blue Ocean Equities acted as joint lead managers on the raise.
The company advised that funds raised through the placement will be used for additional working capital to continue work on its Ngualla rare earth project pre-feasibility study.
Chief executive of Peak Alastair Hunter said the share placement was a positive step forward.
“This raising will allow us to maintain momentum on the Ngualla project,” he said.
