Zenith Minerals (ASX:ZNC) confirmed the completion of its fully underwritten non-renounceable entitlement offer raising around AU$3.5 million, before costs, and it will use funds to support an exploration drilling campaign at the firm's Dulcie gold project in Western Australia as well as a diamond drilling program at the Red Mountain gold project in Queensland, according to a Wednesday Australian bourse filing.

The rights issue was conducted based on two fully-paid ordinary shares for every seven existing shares held by eligible shareholders at an issue price of AU$0.03 per new share, with one free unlisted attaching option for every three new shares subscribed, exercisable at AU$0.077 and expiring on July 31, 2027.

The funds raised will also provide essential working capital for ongoing corporate and exploration activities.

The new securities are expected to be issued and allotted on July 18, and the quotation of the new shares on the ASX is expected to begin on July 21.