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Minera IRL to get C$32.65 million in larger than expected fundraising

Minera IRL (TSX:IRL, LON:MIRL, BVL:MIRL) said it will raise C$32.65 million, or £20.15 million, as it has now priced up its equity offering.

The initial details of the fundraising were announced last week and with 28.3 million shares being issued at C$1.15 each Minera will raise 2.65 million more than the C$30 million it previously expected.

The new capital has been earmarked to help advance the Ollachea and Don Nicholas gold projects, in Peru and Argentina respectively.

Earlier this month Minera told investors that the feasibility study and key activities at its Don Nicolas project in Argentina are on track for the middle of next year.

Infill and step out drilling has been completed on principal deposits Martinetas and Sulfuro Vein, where notable intersections into the Sulfuro Vein include 5.9 meters grading 18.17 grams per tonne (g/t) gold, 12.85 meters grading 9.98 g/t gold and 6.8 meters grading 15.7 g/t gold.

Meanwhile, in a recent interview with Proactive Investors, the company’s chairman Courtney Chamberlain spoke of his excitement and confidence about Olloachea.

“The Minapampa zone which has got the 1.3million ounces is only 680 metres in strike length.  

“Since that resource was published we’ve added another 200 metres of strike length in Minapampa East which will come into a resource category.

“We’ve also discovered a zone called Concurayoc out to the west, which is about a 500 metres strike length, the deposit is open in both directions along strike and it’s open down dip.

“I think there’s going to be exploration going on there for many years to come and I am very confident that that resource space will grow substantially.”

The funding is expected to close on 10 November 2010.

Disclosure: No Positions