Gold Fields last week exercised its participation right in the first tranche of a non-brokered placement and increased its pro rata ownership in Chakana, acquiring 5.8 million more shares for C$2.9 million to take its interest from 16.8% to 19.99%.
The South Africa-based gold major had made a strategic investment in Chakana in April 2019.
It said it acquired the shares for investment purposes.
Chakana raised $7.09 million in the first tranche at 50c and said it reserved the right to increase the placement to raise up to $12 million.
It's using the proceeds to accelerate exploration and development of Soledad, where a second rig was due to arrive late last week.
Chakana restarted a 15,000m drilling programme in August and has since announced three new discoveries, at Paloma East, Paloma West and at the Huancarama breccia complex where drilling was ongoing.
"Combined with our current cash on hand, we now have $9.3 million to cover the aggressive 26,000m drill programme this year to test numerous additional targets and to publish a maiden resource on several of the breccia pipes," Kelley said.
Chakana last week reported the highest-grade intercept at Huancarama to date, of 11m grading 2.79g/t gold, 4,04% copper and 330.8g/t silver, for 8.69% copper-equivalent, within a broader intercept of 93m at 1.63g/t gold, 0.95% copper and 129.2g/t silver for 3.12% Cu-eq.
Chakana shares (TSXV: PERU) have ranged from 7.5-80c over the past year and closed unchanged on Friday at 52c, to capitalise it at $48.5 million (US$38.3 million).
