Quebec-based Clifton Star Resources (CVE:CFO) says it has closed a private placement financing with Industrial Alliance Securities, raising $3.45 million.
The company issued 2.76 million flow through shares at a price of $1.25 each, including shares issued under an over-allotment option, which was used in full.
The miner said it plans to use the new funds for exploration expenses at its Duparquet project in Quebec, and to upgrade and expand its resources.
Last month, Clifton Star unveiled drill results from another 19 holes at its Duparquet project, showing potential for expansion of the mineralized zones.
The drilling focused on the exploration potential to the east of the Donchester pit shell, toward Central Duparquet. Significant gold grades extended for more than 400 metres to the east of the current Donchester pit shell, Clifton added.
Notable results from exploration outside the pit shell included 26 metres grading 1.29 grams per tonne (g/t) gold in hole CD12-07, and 4.0 metres of 5.86 g/t gold in hole D12-13.
Clifton Star continues to expand the resources at the Duparquet project with two drill rigs. As of mid October this year, it had drilled 68 holes, with 17 completed since the end of August.
The first integrated resource report on the project, released in May, included the Beattie, Donchester, Dumico and Central Duparquet properties, as well as the Beattie tailings.
The report noted 1,284 ounces of gold in the measured category, 1.71 million ounces of gold in the indicated category and 1.67 million ounces of gold in the inferred category.
The junior miner is now focused on putting out its preliminary economic report - which it hopes will secure a re-rating of its stock.
"We are expecting a new resource estimate, which will include 2012 drilling up to September, as well as the preliminary economic assessment for the project - expected to be completed by the end of the year," president and CEO, Michel Bouchard, toldProactiveinvestors in October.
The miner anticipates releasing the documents to the markets early in the new year.
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