Canamex Resources Corp. (CVE:CSQ)(OTCQX:CNMXF) said Friday it has closed an equity financing with Gold Resource Corp (NYSE MKT:GORO) and various insiders of the company, priced at a “then-premium” to market. 

Gold Resource Corp acquired 22.22 million shares of Canamex, and insiders acquired an additional 1.77 million common shares, at a price of nine cents per share, which was then a 12.5% premium to the closing price on the day the agreement was reached. Shares of Canamex closed Thursday at 13 cents on the TSX Venture Exchange. 

Canamex said the total purchase price for 24 million shares was $2.16 million, with no warrants issued and no fees paid in connection with the financing. 

Proceeds will be used for the exploration and development of its Bruner gold project in Nevada, as well as for general working capital.

Gold Resource Corp, which produces precious metals from its operations in Oaxaca, Mexico,  now holds 18.4% of Canamex, and has the right to appoint one representative to Canamex’s board of directors, provided it holds more than 10% of the company.

“We are delighted to welcome GRC as a strategic investor,” said Canamex CEO Robert Kramer. 

“GRC management has a wealth of experience in the gold mining sector, and we believe they fully understand and support our vision for our flagship Bruner Gold Project.”

Canamex late last month unveiled metallurgical test results it called “encouraging”, as they showed high gold extraction rates at both the historic and Penelas East deposit areas at the site, while column leach tests showed rapid gold extractions even from the lower grade portion of the historic resource region. 

The company in December also reported results from three core holes drilled at its Penelas East discovery, saying all the holes intersected long intervals of disseminated gold. Of the highlights, 79.9 metres of 1.5 grams per tonne (g/t) gold was intersected. The Penelas East area has been the focus of exploration for Canamex over the past two years, with the target still remaining open to the north. 

The Bruner project is located about 45 miles northwest of the Round Mountain mine, which has produced over 10 million ounces of gold over a 30-year period.