PERTH (miningweekly.com) -  Junior BMG Resources will raise A$2.5-million in a share placement to fund exploration work in Western Australia.

The ASX-listed company on Thursday said that it had received firm commitments from institutional and sophisticated investors for the placement of 66-million shares, at a price of 3.8c each.

The share placement will be conducted under BMG’s existing placement capacity, and will not require shareholder approval.

“Gold exploration continues at pace in Western Australia, and we are pleased to have received this strong backing from both new and existing shareholders,” said MD Bruce McCracken.

“With these funds secured, we look forward to advancing the next phase of exploration across our portfolio of gold assets in Western Australia, in particular the Abercromby project, which has been the central focus of our efforts over the past 18 months.”

Some 4 000 m of drilling is under way at Abercromby, focused on resource step-outs, extension holes and infill drilling at the Capital prospect, while 7 500 m of air-core drilling is focused on testing key regional targets.