A special warrant financing has raised $2.1 million for Arequipa Resources (VSE). The warrants were issued at 75 cents each and are convertible, at no extra cost, into one additional common share.
The company had planned to raise up to $4 million through the issue, but weakness in junior resource markets stalled the offering.
Proceeds will be used to explore and develop projects in Peru. A $650,000 drill program is planned for the Paron gold project, where previous work outlined a near-surface resource of 2 million tonnes grading 3.11 grams per tonne. The new program will test for the extension of the deposit to the north, south and west.
Additional funds will be used to explore the company’s California IV and El Ferrol gold prospects. Including the recent placement, Arequipa has 21.4 million shares outstanding.
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