Castillo Copper is seeking to raise $3.5 million to fund continued drilling at its copper projects in Chile.
The Perth-based exploration firm today announced it had appointed CPS Capital Group to place 350 million of its shares, priced at 1 cents each, with institutional and high-net worth clients to raise the funds.
The capital raising remains subject to shareholder approval.
Castillo said it would use the proceeds to advance drilling programmes at two of its projects in Chile, and evaluate new opportunities as they arise.
The company said it would lodge a prospectus with the ASX shortly.
At close of trade today, Castillo shares were steady at 3 cents.