Minera IRL raises funds for Ollachea project in Peru

Gold mining company Minera IRL on Monday announced plans to raise 32m Canadian dollars to be used mainly to fund development costs for its Ollachea project in Peru.

The Latin American group said it intended to file a prospective supplement in Canada - other than Quebec - and the UK, US and parts of South America on a private placement basis.

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For the Ollachea project, Minera budgeted C$4.2m for general and administration costs, permitting, community, archaeology and land acquisition, C$6.9m for detailed engineering and to advance the tunnel to 1,200 metres, and C$5.5m to take the tunnel to 1,560m for a second payment.

The remainder of funds will be used for the Don Nicolas project in Argentina, Patagonia exploration and for working capital.

The project is currently in the permitting stage following a definitive feasibility study in 2012.

Shares fell 12.38% to 46.00p at 14:36 Monday.

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