A union representative at Fekola told Reuters some workers were on strike and production had continued at a reduced level.

Labrador Gold will use the finds primarily for its exploration at the Kingsway gold exploration project.

This new discovery could have major positive impacts on the project, in particular on the next updated mineral resource estimate, company says.

The proceeds will be used to fund work at the copper-gold Red Chris mine in British Columbia and repay short-term debt.

Eric Sprott was the leading investor in the C$8 million placement.

Gold has been buoyed by the combination of falling real bond yields and a weakening dollar.

Endomines expects production of around 9,000 ounces of gold per year for more than seven years.

The goal relates to its Scope 1 and Scope 2 emissions, though the Australian gold miner said it will continue to work across its value chain to reduce Scope 3 emissions.