The Adelaide-based company is setting up a semi-permanent camp at the site 50km from the former Challenger gold mine this week, and aims to begin the next phase if drilling before the end of the month.

The company opened the equity placement on Friday and announced this morning the book was significantly oversubscribed within hours of opening.

Marmota chairman Dr Colin Rose said the company was pleased with the strong interest shown by investors.

“I am also very pleased to report that yesterday, our team departed Adelaide for Aurora Tank, that the new semi-permanent camp is today on its way to Aurora Tank via road train, along with cranes out of Port Augusta, and support crew from Coober Pedy,” he said.

“We hope to have the new camp installed by the weekend, with drilling to immediately follow.”

The placement consists of 122,641,510 new shares to be issued at a price of 5.3 cents per share to raise $6.5 million (before costs), with one attaching unlisted option for every two New Shares subscribed for, exercisable at 10 cents with a two-year expiry.

Proceeds of the placement will be used to accelerate development at Aurora Tank, potentially acquire neighbouring tenements and pay for exploration, working capital and the costs of the offer.

Marmota also last month received a $225,000 state government grant to further develop a technique that uses leaf and foliage samples from trees to help determine an area’s gold prospects.

The company’s shares opened at $0.063 this morning, their highest value since April 2013.

Rose said Marmota had an excellent team of geologists successfully advancing the Aurora Tank discovery.

“Marmota recently received outstanding high-grade gold intersections at Aurora Tank,” he said.

“We now have ahead of us our largest and potentially most interesting and exciting drill program to date.

“Our financial position is now the strongest that I can ever recall it being, and we look forward to expediting our operational pathway for the benefit of our shareholders.”

Meanwhile, Adelaide company Thor Mining this morning announced it had sold its rights to the Spring Hill gold project in the Northern Territory for $1 million.

Thor has executed a Sale and Purchase Agreement with TRR Services Australia Pty Ltd, a 100 per cent owned subsidiary of Trident Royalties.

A director of Thor Mining, Mark Potter, is also a director of Trident Royalties. In a statement to the ASX this morning, Thor Mining said Potter had not participated in any decisions is respect of this transaction.

Thor Mining Executive Chairman Mick Billing said he was pleased to be able to monetise the royalty rights Spring Hill “in these challenging times”.

“We have active plans to accelerate exploration programs at the Pilbara gold project, the Kapunda copper and gold investment, and our new opportunity with uranium and vanadium in the USA, and the revenue from this sale, combined with existing cash reserves is expected to meet those programs,” he told the ASX this morning.

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