The company will place 215 million shares at 5.4c per share, an 8.5% discount to the five-day volume-weighted average price of shares.
The shares were placed to domestic and overseas institutional and professional investors, including two unnamed “leading international resource funds”.
Hartleys and RFC Ambrian were joint lead managers to the placement.
It comes after the company raised $3.35 million in April at 2.8c.
The funds will be used to advance the Giro project in the Democratic Republic of Congo to a maiden resource.
It comes after first-pass drilling at the Douze Match prospect last month returned 2m at 196 grams per tonne gold from 12m; 15m at 255.6gpt from 15m, including 3m at 1260gpt; and 33m at 6.1gpt from surface, including 3m at 34.7gpt gold.
Burey chairman Klaus Eckhof, who was marketing in London last week, said the results of the placement highlighted the investor interest in the project.
“With these placement funds Burey can truly commence uncovering the potential that we have been glimpsing so far at Giro and allows for long-term planning,” he said.
“Our exploration programs to date have seen relatively shallow but successful scout drilling. Soil anomalies and artisanal workings have been highly accurate as target finders and now with targeted diamond drilling we can interpret and define the scale of Giro’s potential, where significant results so far have come from almost every hole we have drilled in the contact shear zone.”
Further results are due from Douze Match this month, while a second reverse circulation rig will conduct infill drilling at the Kebigada prospect.
Giro is only 30km from the 17 million ounce Kibali gold mine.
Eckhof and Burey director Mark Calderwood worked for Moto Goldmines, which discovered Kibali.
Hartleys analyst Scott Williamson said Giro had the potential to be a company-making asset.
“We believe the Kebigada shear zone has already shown potential to host a multimillion ounce deposit and we like the opportunity to discover further large deposits along this 30km corridor,” he said last month.
“We like the potential of the Douze Match prospect to deliver further high-grade mineralisation which could be easily exploited by either a junior miner or major neighbour.”
Both Hartleys and RFC have a 9.5c price target on Burey.
Shares rose to 6.9c this morning.
