Merah Resources (ASX:MEH) has raised $415,196.82 through the...

Merah Resources (ASX:MEH) has raised $415,196.82 through the placement of shortfall shares priced at $0.03 each from its recent entitlement offer to its underwriters.

The 13,839,894 were allotted to Patersons Securities Limited and its sub-underwriters, bringing the total raised by the 2-for-3 offer to $661,900 before costs.

Proceeds will be used to fund exploration of its Ghana assets, the Fyre Lake project in Yukon, Canada and the Coober Pedy copper project in South Australia as well as the acquisition of Oresearch Limited.

Fyre Lake, which is held by Oresearch, hosts the Kona VMS deposit that has a Resource of 8.93 million tonnes at 1.52% copper, 0.09% cobalt and 0.56 grams per tonne gold.

Merah aims to increase the size of the Kona Resource via infill and extensional drilling.

Significant exploration potential also remains, over and above determining the ultimate size of the Kona massive sulphide deposit.

The company will also test a 4 kilometre long exploration target located northeast of Kona and a 3 kilometre-long exploration target lying west of Kona that are larger and more intense as compared to the magnetic feature associated with the Kona mineralisation.
   
Coober Pedy comprises three exploration licences totalling 900 square kilometres where vendor Teck Australia has defined the Cyclops IOCG prospect, a strong, discrete magnetic and gravity anomaly.

The company plans to carry out an initial 1,200 metre drill program to test the anomaly.

These are in line with the company’s greater emphasis on copper project acquisition and development.

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