Western Australian explorer Rincon Resources (ASX:RCR) has raised $3.1 million through a placement to sophisticated and professional investors to accelerate exploration activities.
The capital raising was conducted at $0.015 per share, representing a 6.3% discount to the last closing price of $0.016.
The funds will primarily be utilised to support a larger drill program at its 100% owned Telfer South Gold-Copper Project, situated in the Paterson Province.
Rincon's Technical Director, Michael Griffiths, stated that the fresh capital will allow for an expansion of drilling efforts, particularly following the recent analysis of historic Newcrest datasets.
The analysis has indicated that the surface exposure of the Hasties prospect is larger than originally anticipated, now stretching over 1km in length, with surface chip samples revealing elevated grades of up to 37 g/t gold and 21% copper.
The company plans to mobilise a drilling rig to the site as soon as weather conditions permit.
Furthermore, Rincon intends to expand the mineral resource estimate for the Hasties prospect later in 2026.
The placement also included a commitment of $600,000 from company directors and officers, subject to shareholder approval at an extraordinary general meeting scheduled for April.
In addition to the Telfer South project, proceeds will be directed towards the Crackerbox Gold Project in the Murchison Gold Field and for general working capital requirements.
At the time of reporting, Rincon Resources' share price was $0.020.