Quia Resources to raise up to $2 mln in financing

Gold explorer Quia Resources (CVE:QIA) said Wednesday it plans to raise up to $2.0 million in an offering.

The placement will consist of up to 40 million units at a price of 5 cents each.

Each unit consists of one common share and one half of one warrant, with each full warrant allowing the holder to acquire one common share of the company at a price of 10 cents each for a year and a half.

The warrants are subject to an acceleration right at the option of the company, provided that common shares trade at or above 25 cents for a full 20 consecutive trading days.
               
The new funds will be used to finance exploration at the company's San Lucas property in Colombia, and for general working capital purposes.

The San Lucas gold belt is among the least explored and most prospective gold belts in Colombia, the company noted.

In May, the South America-focused company unveiled further drill results from its San Lucas project.

Among the highlights of the drilling, holes SL1215A and SL1217, spaced approximately 290 metres apart along strike at Rueda South, intersected 2.72 grams per tonne (g/t) gold over 2.85 metres including 5.87 g/t gold over 0.89 metres, and 7.35 g/t gold over 0.25 metres respectively.