The recent discovery of an ultra-high grade structure positions Trixie as one of the highest grade gold mines in the world, Osisko says.

Rating agency said decision to nationalise the Kumtor mine indicated weak governance and investment climate deterioration.

The fresh funds will be used for moving the Omagh gold project in Northern Ireland into production and for working capital, the company said.

The company says the plant, which it will purchase for C$5.5 million, will significantly reduce the cost of developing its NICO cobalt-gold-bismuth-copper project.

Gold is so far almost unchanged this year, despite the initial decline and the subsequent rally.

SPDR Gold Shares on Friday recorded its biggest net inflow in dollar terms since listing in 2004.