Volcanic had closed the option - flagged in June following board and management changes - in September to earn 60% of Radius Gold's Holly and Banderas projects in the country's east, describing the prospective land position as covering a significant portion of the Volcanic belt which hosts the Escobal silver mine and Cerro Blanco gold deposit.

Under the deal, it had to raise at least C$3 million, pay $100,000 in cash and spend US$7 million on exploration within 48 months of drilling permits being granted.

Silvercorp took an initial 19.9% interest as part of Volcanic's C$3 million placement which was upsized to $5 million, priced at 25c per unit, and closed in July.

Volcanic then planned another $5 million placement in September but said yesterday it had raised a total of $8.6 million.

It had raised $6.9 million through an offering at 55c per unit and a further $1.7 million thanks to Silvercorp concurrently exercising its right to maintain a 19.9% interest.

Volcanic plans to use the proceeds to advance its principal assets in Guatemala and for general corporate purposes.

It had also gained an exclusive 24-month right to evaluate and enter agreements over Radius' other properties in eastern Guatemala.

The country reopened its borders to international travel in September and Volcanic said field work started this month.

It was planning a 5,000m drill programme for the Holly target, where previous results had included 3.6m at 22g/t gold and 697g/t silver.

Volcanic (TSXV: VG) shares have risen from C4.5c to a peak of 93c in August.

They closed up 8% yesterday to 54c, to capitalise it at $15.4 million (US$11.7 million).