Ofex-traded gold prospecting company HPD Exploration has placed 17.6 million shares at 13.5p to raise £2.37 million to find exploration in Argentina, writes Robert Tyerman.

HPD's placing, foreshadowed here ten days ago and handled by broker Seymour Pierce, follows a joint venture agreement by which Patagonia Gold, which it half owns, to develop two potentially rich epithermal gold prospects in southern Argentina. Patagonia is taking an exclusive option to buy up to 80 per cent of the Cuya and El Fuesto prospects, which are both regarded as containing significant mineralisation.

Patagonia intends to start exploratory drilling in February and can earn 50 per cent of the two projects from Apac Minerals of Canada by spending £1 million over two years. HPD, which lost £400,000 in the nine months to June, is chaired by Richard Prickett, former boss of its larger sister company, Brancote (now part of the Meridien group).

Recommended at 4.75p in April in our former Mining Column, HPD shares edged 0.25p higher today to 14.375p, 1p off their year's high. An Aim move is on the cards.