Native Mineral Resources Ltd (ASX:NMR) is set to raise $3.46 million to progress development of its Far Fanning and Black Jack deposits in north Queensland, as well as funding exploration across other tenements and working capital requirements.

The company has received commitments from sophisticated and institutional investors for a private Placement, expecting to raise $3,463,731.24 (before costs) with the issue of 86,593,281 fully paid ordinary shares priced at 4 cents each.

The amount was raised under a premium of 14.3% to the last closing price.

NMR is also planning to undertake a non-renounceable Entitlement Offer with the same share price, aiming to raise up to $15.9 million (before costs); this will allow existing shareholders to participate on the same terms as the Placement.

In this, managing director and CEO Blake Cannavo will take up his full entitlement of over $3 million, and he said the capital raising would enable NMR to move ahead with its plans for gold exploration in the state.

“The support of the investment community provides confidence in our plans,” he said.

“The newly acquired projects provide the opportunity for us to transition from a junior explorer to a potential gold producer in under two years.”

NMR shares have risen following the news, and at 10:39 AEDT, they were trading at 4 cents – a rise of 14.29% since the market opened.

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