Tangiers Petroleum has announced a $5.8 million share placement to assess growth opportunities in Africa, including potential farm-in deals and acquisitions.

Tangiers announced today that the funds would be raised through a $5 million placement to institutional investors and a share purchase plan to existing shareholders, capped at $800,000.

The placement and purchase plan were priced at 28 cents per share.

Newly-installed chairman Eve Howell said the proceeds would underpin the company's growth strategy.

"This raising will enable us to hit the ground running," Ms Howell said.

"We see the support shown for this capital raising and the investment by new institutional and existing shareholders as a strong endorsement of the strategy the new board has undertaken and positions us strongly to fulfil our growth objectives.

"There are significant opportunities in Africa for Tangiers to acquire interests in exploration and development projects.

"As part of our strategy, we are looking for deals which have the potential to generate substantial returns for shareholders."

At 1:20PM, WST, Tangiers shares were up 3.2 per cent, trading at 32 cents.