Lefroy Exploration and Carawine Resources are set to raise nearly $11 million cumulatively after receiving backing from sophisticated and institutional investors.
West Perth-based Lefroy says its bid to raise $6 million from high-net-worth investors had been heavily oversubscribed.
Company directors also took up $300,000 worth of shares under the placement.
Once completed, the placement will see another 18 million LEX shares hit the market at 35 cents per share.
The price represents a 14.6 per cent discount on the company’s last closing price and an 11.4 per cent discount on its volume-weighted average price.
Lefroy chair Gordon Galt said completing the placement meant his company was funded for exploration at the Eastern Lefroy gold project and the Burns project near Kalgoorlie.
Meanwhile, gold and base metals explorer Carawine was able to tap investors for roughly $4.9 million after offering up company shares at an 8.9 per cent discount on their 15-day VWAP at 18 cents.
Major shareholder Christopher Wallin, who Carawine said was a strong supporter of the placement, is set to increase his stake in the company to 19 per cent once the placement is finalised.
Proceeds from the raise will be used to ramp up exploration at the Carawine’s Tropicana North and Fraser Range projects in WA.
Bridge Street Capital Partners acted as sole lead manager to the placement.
Lefroy shares closed the day at 41 cents, while Carawine was up 10.53 per cent to trade at 21 cents.