Serabi Gold PLC said March 29 that it raised about US$9 million through a share placement by Peel Hunt LLP, which is acting as the sole bookrunner.

The fundraising is in addition to the US$15 million investment from Greenstone Resources II LP for a 29.82% interest in the company, which was announced earlier in March.

The group is raising the new funds through an accelerated bookbuilding, offering shares at 3.6 pence each, representing a 12.2% discount to the closing share price March 28.

Serabi has earmarked the money for drilling at the Sao Chico and Palito projects and more work at the Coringa project in Brazil and for repaying US$3 million of its US$8 million Sprott Resources facility early.

"Following positive feedback from the Greenstone subscription, the company decided to pursue a placing to give access to further capital and to widen its shareholder base through the introduction of a broad range of investors who are also supportive of the company's plans and ambitions," Serabi said in a statement.