Phoenix Gold has raised $20 million through a share placement, to accelerate drilling programs at its gold projects in the Goldfields over the next 12 to 15 months.
Phoenix announced today that the placement, priced at 30 cents per share, received strong support from shareholders and institutional investors.
The gold explorer also said it would launch a $2 million purchase plan for existing shareholders, also priced at 30 cents per share.
Managing director Jon Price said the funds would be used to accelerate drilling programmes and complete a definitive feasibility study for the Castle Hill gold project near Kalgoorlie-Boulder.
"Drilling success to date at Castle Hill and Broads Dam has demonstrated that the more drilling we do, the bigger the project becomes," Mr Price said.
"With shareholder support and encouragement it has become apparent that we must accelerate the drilling programmes at our flagship projects to grow the resource and reserves as fast as possible.
"With these funds raised today we will triple the drilling activity at Castle Hill and Broads Dam and fast track the DFS in parallel."
At 10:20AM, WST, Phoenix shares were down 7.2 per cent, trading at 32 cents.