Mithril Resources Ltd (ASX: MTH) announced that it has received firm commitments from sophisticated and professional investors to raise A$5m through a share placement at A$0.019 (1.9 Cents) per share.
The Company said that funds raised will be used to continue the 2021 drill programme in the Copalquin Gold Silver District in Mexico, to deliver a maiden JORC Resource and for general working capital.
Drilling and exploration plans
The company announced the workplan for 2021 using the funds raised.
MTH said that the immediate activity will be the drilling of the first deeper holes at the Refugio large epithermal system discovery in Cometa Project.
The company said that three deeper holes have been completed at El Refugio to test the deeper extents on the eastern side of the El Refugio target where there are higher gold and silver grades and significantly greater width to the breccia zone.
Soil sampling and mapping program
Mithril said that expansive soil sampling and mapping program at El Refugio West has been completed and the programs in progress at La Soledad West and El Indio prospects. MTH said that the work at the Zaragosa prospect is to commence in the coming days.
Drilling to continue
MTH said that the drill plans were completed for work at the Cometa Project (El Refugio and La Soledad targets) and the Reyes Project (Los Reyes, Cristiano and Los Pinos).
The company said that drilling will continue at the Refugio and La Soledad targets at the Cometa Project and will move to the Reyes Project area later in February for a series of holes before resuming at the Cometa project again in March.
Mithril Managing Director and CEO, John Skeet, said: “The successful 2020 maiden drill program has provided the El Refugio discovery and the technical basis to test and expand the extents of the high-grade gold and silver mineralisation within the contiguous Cometa and Reyes Project areas in the Copalquin district.
I thank all participants for their continued support and we look forward to reporting news of our exploration work in the district over the coming months and providing a maiden resource later in the year.”