Gascoyne Resources (ASX:GCY) has raised $21 million in an oversubscribed placement, supported from existing institutional shareholders and new domestic and international investors.
The funds will be used to commence exploration at the Dalgaranga and Glenburgh gold projects in the coming months as well as provide additional working capital to target new discoveries.
The shares will be issued at a price of $0.38 per share.
Construction for the Dalgaranga gold mine is on schedule and on budget, with the first gold production scheduled to be in the second quarter of 2018.
Debt funding is on track for the gold mine, with facility agreements with two Australian banks underway.
Shares in Gascoyne Resources (ASX:GCY) are trading 7.06 per cent lower to 40 cents.