The small cap explorer said it will use the cash for working capital purposes.
Some 100mln shares are being issued through the placing, organised by Beaufort Securities, at a price of 0.25p per share.
In a stock market statement Wishbone chairman Richard Poulden welcomed the support of investors.
"It is great to have the support of the City backing precious metals, in particular gold, at this counter cyclical moment," he said.
The company also repeated previous guidance that it also intends to issue shares to convert certain director and shareholder loans into equity to preserve cash and running costs.
Wishbone currently has exploration licences in Queensland, Australia, and it has been looking at acquiring additional projects.