Alien Metals Limited (LON:UFO) has raised £700,000 in a share placing and subscription to fund what it says is “high-impact exploration” in Mexico and Australia.

The company said it had raised the funds through the issue of around 466mln new shares at a price of 0.15p each, a 29% discount to its Monday closing price.

READ: Alien Metals commissions IP survey at the Donovan 2 copper-gold project in Mexico

The firm is also issuing one warrant with every three shares, exercisable at 0.3p for a period of two years from admission of the new shares, expected to occur on 10 March.

 Aline said the cash will focus on commencing activities to understand strike and depth potential of known mineralised veins at its projects in Mexico, as well as a geophysics survey of the Donovan 2 gold and copper targets.

The money will also assist with a digital compilation of the Elizabeth Hill silver project in Australia, followed by updated resource modelling. Alien has also appointed Turner Pope as its joint broker.

“The proceeds of this raising will facilitate the planned next stage exploration work in Mexico, including an IP survey at Donovan 2, an underground mapping and sampling program at the San Celso silver project, as well as ongoing data compilation work on the Elizabeth Hill Silver project in Australia ahead of a field program to be undertaken in the second quarter”, said Bill Brodie Good, the company’s technical director.

“We believe that with a relatively modest sum, we can deliver high-impact exploration programs across our existing and proposed licences”, he added.

Alien Metals shares were 21% lower at 0.17p.