Ethos has the cash to turn the drills

Armed with cash, Ethos Capital (ECC-V) is ready to begin some serious exploration work in both the Yukon and Mexico.

As gold and silver prices were falling, the company brought some good news to junior mining investors, as it announced the closing of two private placements that will bring roughly $14 million into its coffers.

The news was deemed significant enough by the markets to send the company’s up 6% or 6¢ to $1.16 on a day when most miners were feeling some serious downward pressure.

The first of the deals was for 5.8 million units at a price of $1.00 per unit and 4.92 million flow-through shares at a price of $1.20 per share. That deal grossed $11.7 million for the company.

But Ethos was in no mood to stop there. The company managed to raise another $3.17 million via a second private placement. That piece of equity financing cost the company 2.45 million units and 600,000 flow through shares.

Put the two deals together and the Ethos managed to gross $14.9 million for this round of financing.

The company reported that each unit is made up of one common share and a warrant that entitles the holder to a half of a share at a strike price of $1.35 per share which is valid until November 5, 2012.

On top of the cash of the fees paid to the brokers Ethos also issued the syndicate 643,200 warrants that allow for the acquisition of one unit at a strike price of $1.00 until November 5, 2012. Canaccord Genuity was the lead underwriter.

The new capital will flow into the company’s gold projects in the Yukon and its silver projects in Mexico.

Of particular interest to investors will be its progress in the White Gold district south of Dawson City. The area has seen the recent large scale discoveries Barrick Gold (ABX-T, ABX-N) Nova Gold’s (NG-T, NG-X) Donlin Creek project, International Tower Hills (ITH-V) Livengood deposit and Kinross’s (K-T, KGC-N) Fort Knox deposit.

Ethos has four main properties in the area: Hen, Wolf, Bridge and Betty. The projects are all in close proximity to Kaminak Gold’s (KAM-V) Coffee gold project

But Yukon gold isn’t the company’s only interest. Ethos says capital from the new equity financing will also work its way south to its Santa Teresa and Corrales silver-zinc-lead properties in Mexico.