29Metals (ASX:29M) launched a fully underwritten AU$180 million equity raising through an institutional placement of a 1-for-1.43 entitlement offer at AU$0.27 per share, according to a Tuesday filing with the Australian bourse.

The company notes that the offer price represents a 27% discount to the last close of AU$0.37 per share on Monday.

The proceeds from the equity raise will be used to refinance debt, extend senior debt maturity to 2028, and fund the development of the Gossan Valley copper-gold project in Western Australia to first ore, the filing said.

The raising will reduce senior debt by AU$28 million and fund AU$112 million for Gossan Valley's development, expected to deliver a 34% internal rate of return.

An additional AU$40 million will be allocated to water reduction at the Capricorn Copper project in Western Australia and general working capital, the filing added.

Key investors superannuation fund AustralianSuper and mining, rehabilitation services provider BUMA, have committed to take up their full entitlements and invest an additional AU$40 million and AU$62.1 million, respectively.

29Metals is also conducting a fully underwritten placement of new shares to raise AU$47.4 million alongside the institutional entitlement offer, the filing said.