Serabi Mining has announced a £12 million cash injection, raised by placing around 29 million shares, which will be used to explore the Palito gold mine in Brazil.
The site is a high-grade gold-copper ore body, and Serabi intends to conduct a detailed evaluation (with a view to potential development) of the Ruari's Ridge and Chico do Santo projects.
This money will allow the company to fully evaluate the Palito area over the next two years and "properly scope the potential for the next production expansion".
Serabi chairman Graham Roberts said that success in the evaluation process could increase production to between 60,000 and 70,000 ounces of gold equivalent.
He also spelled out the firm's three primary objectives for the longer term: to become a mid-tier gold producer with production of more than 200,000 ounces per year; to be placed in the lower quartile of the world's producers in terms of cash operating costs; and to ensure the longer term growth of quality resources.
The Palito mine is located in the Tapajos region of northern Brazil.