(Alliance News) - Great Southern Copper PLC on Monday said it has agreed GBP1.0 million in funding for its exploration programmes through a placing, subscription and convertible loan facility.

The Chile-focused copper-gold exploration company said the proceeds will be used to finance drill testing at its Especularita project, as well as exploration at its San Lorenzo project.

The firm said GBP501,000 was raised via a placing, with 41.7 million new shares issued at 1.2 pence per share, representing 20% of the firm's issued capital.

Great Southern shares rose 9.1% to 1.20 pence each in London on Monday afternoon.

The remaining GBP501,000 was raised through a convertible loan facility with Foreign Dimensions Pty Ltd, which is the firm's main shareholder.

Great Southern will be able to draw down half the facility on August 31, and the remainder on September 11.

Chief Executive Sam Garrett Said: "We are very pleased with the strong support shown for this fundraising from new and existing shareholders, which reflects the confidence in our copper-gold exploration projects in Chile. At Especularita, we are in the process of preparing multiple high-grade [copper-gold] prospects for drill testing.

"This is very exciting because none of these prospects have been drilled before despite strong evidence of high-grade [copper] and [gold] at surface. In addition, regional exploration efforts are continuing at both the Especularita and San Lorenzo projects to identify potential for large-scale low to medium grade [copper-gold] deposits."

By Harvey Dorset, Alliance News reporter

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