Azure Minerals Ltd. is raising A$8.2 million to fund the ongoing development of its flagship Oposura zinc-lead property and to accelerate exploration at its Sara Alicia gold-cobalt project, both in Mexico.

The company will also use the proceeds for ongoing exploration and general working capital, it said Feb. 27.

The placement will comprise 27.3 million shares at 30 cents apiece in two tranches, with the first tranche expected to raise A$6.2 million and the second tranche subject to shareholder approval to be sought in early April. Every two shares subscribed will also come with an option exercisable at 45 cents per share for two years.

Azure Minerals expects an initial resource estimate for Oposura to be completed in April. The company acquired the Sara Alicia property in August 2017.