LONDON (ShareCast) - (Sharecast News) - Precious metals trading and exploration company Wishbone Gold has raised £0.4m before expenses, it announced on Thursday, which it said would enable it to restart exploration on the White Mountains Project.

The AIM-traded firm said the placing was "heavily oversubscribed", and consisted of 20,000,000 new ordinary shares at a price of 2p each.

It said White Mountains comprises a 4,491 hectare, 100% owned exploration licence about 155 kilometres east of the town of Charters Towers in Queensland, Australia.

White Mountains is along strike from Maroon Gold's Granite Castle resource, which could extend structurally and geologically onto White Mountains.

The Granite Castle deposit has sufficient drilling to allow a JORC total resource of 77,200 ounces of gold, and 1,509,000 ounces of silver.

Wishbone said White Mountains is centred over a "highly favourable" area of the Lolworth region, and includes several polymetallic historic mines and advanced prospects for gold, silver, copper, lead, antimony, nickel, and molybdenum, all of which had been the subject of intermittent exploration over the past 40 years.

"The money raised will allow Wishbone to enhance the White Mountains project at a quicker rate than anticipated," said chairman Richard Poulden.

"As the exploration permit joins an existing proven resource and the same geology appears to continue onto Wishbone's property, the exploration process will be easier as targets are already identified."

At 1402 BST, shares in Wishbone Gold were down 10.6% at 2.24p.

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