Canadian mining giant Teck Resources has acquired a stake in Fremont Gold, backing the latter's exploration initiatives in Armenia.

The investment, made as part of a non-brokered private placement, is aimed at advancing Fremont Gold's two primary projects in the region.

With this placement, Fremont Gold raised gross proceeds of $2m (C$2.76m). This financial injection was achieved through the issuance of 20.15 million units at $0.10 each.

These units comprise one common share and a half warrant, where each full warrant allows the purchase of an additional common share at $0.17 for the next 18 months.

Teck secured four million units, translating to a 6.89% ownership interest in Fremont Gold.

The deal includes two million warrants which, if exercised, could elevate Teck's stake to approximately 9.99% on a partially diluted basis, assuming no other dilutive securities are exercised.

The funds from this placement are earmarked for exploration activities at Fremont Gold's Vardenis and Urasar projects in central and northern Armenia, respectively.

Additionally, Fremont Gold has outlined plans for a minimum 22 line-kilometre induced polarisation survey at Vardenis and is preparing for a maiden drilling campaign at Urasar, among other scheduled exploration tasks for the upcoming field season.

Fremont Gold president and CEO Dennis Moore said: “We are very pleased to welcome Teck as an investor, and believe their participation is an important endorsement of our two Armenian properties, our management team and the opportunities that lie ahead.

“We embrace Teck as a significant shareholder going forward on our road to discovery in this incredibly endowed and welcoming jurisdiction.

“We are also delighted that there has been considerable demand and genuine interest in the company's recent offering. This is also a validation of our team's hard work, persistence and a recognition of the underlying value of Fremont shares.”