Gascoyne Resources has completed a bookbuild to raise up to $50m with an issue price of $0.50 per share to develop Dalgaranga Gold Project in Western Australia's Murchison region.

The company claimed that the placement was heavily oversubscribed by multiple domestic, international and professional investors.

Furthermore, the company plans to offer eligible shareholders the opportunity to participate in a share purchase plan (SPP) that will raise additional $5m, carrying the same price as the placement.

Funds will be used to explore and used as working capital for the Dalgaranga Gold Project.

Gascoyne Resources managing director Mike Dunbar said: “The overwhelming demand for this placement from supportive shareholders and a large number of new well-respected domestic and international institutional investors provides a strong endorsement of the quality of our high margin Dalgaranga Gold Project in the Murchison region of WA.”

“The company is now in the strongest position it as ever been and we look forward to rapidly advancing the development of Dalgaranga for the benefit of our shareholders.”

"We look forward to rapidly advancing the development of Dalgaranga for the benefit of our shareholders."

Gascoyne has planned to conduct the placement in two tranches.

The first tranche is scheduled to settle on or before 24 February and will comprise 74.9 million shares.

Up to 25.1 million shares will be put up in the placement's second tranche, which is expected to be settled by 16 March  and is subject to shareholder approval.

The Dalgaranga project is around 70km north-west of Mt Magnet in the Murchison gold mining region and covers the majority of the Dalgaranga greenstone belt.

According to the JORC report, the project hosts measured, indicated and inferred resource of 23.7Mt at 1.4g/t Au for 1,051,000oz of contained gold.

Gascoyne purchased 80% interest in the advanced Dalgaranga gold with adjacent exploration tenements in 2012 from private holders.