Volcanic Gold Mines Inc. on Jan. 31 said it plans, subject to approval from the TSX Venture Exchange, to complete a nonbrokered private placement for up to C$5.0 million in proceeds.

The company will offer 12.5 million units priced at 40 Canadian cents apiece, with each unit to comprise 1 common share and 1 full warrant.

Each whole warrant will be exercisable to acquire an additional share at 80 cents apiece for a five-year period from closing.

The proceeds will be used for exploration of the recently acquired Mandiana gold project located in Guinea, for potential property acquisitions and for general working capital.