Guerrero Exploration (CVE:GEX) said it has closed its financing for a total of nearly $0.5 million in gross proceeds.
The company issued a total of around 9.1 million units at 5 cents each.
Each unit consisted of one common share and one share purchase warrant. Each warrant is good for 5 years from closing, at a price of 10 cents per common share.
The warrants are also subject to acceleration of the expiry date, should the share of the company trade at 30 cents for 10 straight trading days.
Guerrero said insiders bought 600,000 units of the offering.
The new funds will be used for general working capital and for exploration on its properties.
The miner said it is immediately undertaking an additional financing on the same terms of up to $600,000, to be used for the same purposes.
In June, Guerrero Exploration and partner Riverside Resources (CVE:RRI) announced a deal which sees Riverside become the largest single shareholder in Guerrero.
As part of the deal, Guerrero will own 100 percent interests in the Cerro Azul and Chapalota projects in Mexico, with Riverside receiving $2 million in Guerrero shares.
In a statement, both companies said the agreement will facilitate exploration progress and allow Riverside and Guerrero to take strides toward an initial drill program at the Cerro Azul copper-gold project and follow-up on remaining drill targets at Chapalota.
Cerro Azul is located near the highly productive southwestern Mexico, Guerrero Gold Belt. The 2011 work program on the 261 square km property consisted primarily of rock chip and soil samples.
Chapalota is located along the western side of the Sierra Madre Occidental Region of Mexico. The 91 square km property is 50 km to the south of Silvermex’s Rosario deposit and 70 km to the north of Oro Mining’s La Trinidad deposit. Riverside and Guerrero completed IP and soil surveys defining six target areas on the project.