Australian exploration and development company Carnaby Resources has secured support for its A$20m ($13.32m) non-underwritten placement from institutional and sophisticated investors.

This placement involves the issuance of 16.4 million new fully paid ordinary shares at A$1.22 apiece.

Euroz Hartleys, Macquarie Capital (Australia) and Petra Capital served as the joint lead managers and bookrunners for the placement.

The proceeds will be used to expedite the company’s exploration activities across its portfolio.

Carnaby’s focus is to develop a maiden mineral resource estimate for the Greater Duchess Copper-Gold Project in Mount Isa, Queensland, by Q3 2023.

More than 40,000m of drilling and extensive geophysical surveys are targeted in this regard.

The company recently intersected 36m at 4.2% copper at the project.

Carnaby managing director Rob Watkins said: “The investment from new and existing institutional shareholders is further validation of the potential of the Mount Hope discovery, as well as the wider Greater Duchess Copper-Gold Project.

“The proceeds from this placement puts us in a very strong position, with A$31.8 million of pro-forma cash to accelerate exploration across the Greater Duchess Copper-Gold Project, with a focus on further drilling to support and grow a maiden mineral resource estimate in Q3 2023.”

This follows another A$20m placement a year ago, which involved the issuance of 15.4 million new fully paid ordinary shares at A$1.30 a share.

The proceeds were mainly utilised to expedite the exploration of Carnaby’s Nil Desperandum and Lady Fanny discoveries at the Greater Duchess project.