The Vancouver-based company says a non-brokered placement of 20 million shares at 5c gives new holders a warrant exercisable at 10c within two years, as well as a 5c common share.

Goldsource has been trading around 6c - about one-quarter of the levels of a year ago - and had a market capitalisation this week of about C$10 million.

The company expanded its current drilling program at Eagle Mountain by 50% to 225 holes, due for completion next February and aimed primarily at outlining the extent of gold mineralised saprolite between its current resource pits containing an estimated 380,000oz in saprolite and as much as 600,000oz in fresh rock.

Goldsource has said it wants to boost saprolite-hosted resources to at least 600,000oz at an average grade of 1-1.5g/t.