UPDATE 1.45pm: Red Mountain Mining has emerged from a trading halt to announce a $1 million placement and a $700,000 share purchase plan.
The money will be spend on further exploratory drilling at the company's Lobo prospect in the Philippines.
The raising will be priced at a discounted 1.7 cents a share.
Under the share purchase plan, retail investors will have a chance to subscribe for up to $15,000 worth of new shares (882,353 shares each).
Shares in the company closed steady at 2.2 cents after spending most of the day in positive territory after emerging from a trading halt this morning.
However Red Mountain shares have soared from 0.4 cents to a high of 3.3 cents in the past two weeks on encouraging high-grade gold intersections at Lobo.
Red Mountain's managing director Jon Dugdale said the company was very keen to find out what was under the exceptionally high grade trenches by commencing drilling immediately.
"The drilling will determine continuity of the high grade gold shoots below surface and at depth, and allow us to drill-out, what appear to be, multiple high-grade gold shoots along the at least 500m long South West Breccia lode structure at Lobo," he said.
"The ultimate objective is to define additional high-grade gold resources and upgrade the already substantial resource base."