Exploration company AusAmerican Mining has raised $905,000 by completing a placement of 21,558,533 shares to a group of investors.

Each of the shares was valued at $0.42, an included one free option for every two shares subscribed.

The proceeds expected to be used to fund the Bluebell and De Soto VMS copper-gold-silver projects located in Arizona, US.

AusAmerican is currently nearing the completion of initial 5,000m reverse circulation drilling program on the Bluebell project.

"If the two raisings are successfully completed, the company will be funded sufficiently to advance its projects throughout the 2013 calendar year," the company stated.

The company also secured an approval from its board to further place 60,000,000 ordinary shares at similar terms as the first placement.

Successful completion of the two rounds of funding will provide the company with capital for the rest of 2013.