Cayden Resources (CVE:CYD) said late Wednesday it has arranged a non-brokered private placement for a total of $4.2 million.

The placement consists of 4.2 million share units priced at C$1.00 per unit. Each unit consists of one common share and one half warrant, entitling the holder to purchase one common share of the company for $1.50 for a period of two years.

The company said it intends to use the net proceeds of the offering to fund the advancement of the its Morelos Sur and El Barqueño gold projects in Mexico and for general corporate purposes.

Cayden said it may pay finder’s fees on the private placement, and closing of the offering is anticipated to occur on or before August 17 subject to applicable regulatory approvals.

The junior mining company is focused on the acquisition, exploration and development of precious metal projects located throughout the Americas.

Last month, Cayden announced it had found high grade gold in a new trench from its La Magnetita target at the Morelos Sur project.

Highlights included 20 metres of 6.39 grams per tonne (g/t) gold, including 6 metres of 14.4 g/t gold. Also, further along the trench, the miner said it intercepted 27 metres of 0.48 g/t gold, and 17 metres of 0.62 g/t gold.

The intercepts are located in the western portion of the 7.3 square kilometre gold in soil anomaly outlined earlier this year.

Cayden has already begun drilling one of the western anomaly targets and is currently awaiting results, it said.

Additional trench samples from both the eastern and western anomaly targets have also been completed, with results pending as well.

In June, the first batch of trench assays from the La Magnetita prospect included 24 metres of 1.65 g/t gold, 25 metres of 0.72 g/t gold, and 25 metres of 0.52 g/t gold.

Cayden currently has three projects located in Guerrero and Jalisco, Mexico, and Nevada, USA.