UPDATE 2.30pm: Avalon Minerals says it is raising $3.6 million in a placement to fund further development of its Viscaria copper project in northern Sweden.

The placement, priced at nine cents a share, is through Patersons Securities, RFC Ambrian and Indian Ocean Capital.

Funds raised will be used for a regional exploration program, a scoping study to determine the economics of an open pit and underground mining operation and completion of planning for a major resource extension drill program.