Vancouver-based African Queen Mines has closed the first tranche of the non-brokered private placement financing that it announced last month, raising C$565,035 so far.
The company issued 3.77 million units at a price of 15 cents each.
Each unit will be made up of one common share and one half of one share purchase warrant. Every whole warrant will allow for the purchase of another share for a period of two years, at a price of 25 Canadian cents each.
In late November, the company said it planned to raise up to C$1.0 million through the non-brokered private placement. It will offer for sale up to 6.66 million units at 15 Canadian cents each. The junior mineral explorer said it can also increase the size of the offering by up to 20 per cent to 8 million units.
The news funds are expected to be used for funding work programs on the company's gold projects in Kenya and Ghana, as well as potential property acquisitions and working capital.
The financing is expected to close in full by the end of December.
Earlier in November, African Queen revealed that its results from the 2012 diamond core drilling program at its Noyem-Nyanfoman gold project in the eastern region of Ghana were consistent with historic data, confirming the potential of the asset.
The 29 square kilometre project is hosted within the the basal conglomerates of the Tarkwaian Group's Banket Formation, which also hosts the Tarkwa Gold Mine operated by Gold Fields that has a combined gold resource of 15 million ounces.
The company said its initial results from the drill program are consistent with reported historic results from predecessors of Newmont Mining (NYSE:NEM), and "tend to confirm the presence in the region over a strike of at least 5.6 km of a relatively continuous gold-bearing reef varying in width from one to 5 m."
Results from African Queen included 4.03 metres at 2.49 grams per tonne (g/t) gold in the Western zone of the Northern Limb target.
The company, as operator of the project, can earn up to a 75 per cent stake in the property under a joint venture deal with Akan Exploration, by funding prescribed stages of exploration through to feasibility.
Vancouver-based African Queen is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals.
In October, the company said it found four new targets from continuing field work in its phase 1b exploration program at the Ugunja gold project in Kenya.