Savannah Resources (LON:SAV) has raised £225,500 through placing shares with three of its existing shareholders, it reported.
Chief executive David Archer said: "We are delighted with the continued commitment shown by these shareholders.
"The funds will be used to support a 1,500m diamond and reverse circulation drilling programme on a series of high priority, VMS and gold targets on Blocks 4 and 5 in Oman.
"We are drilling target types which, by their nature, generally exhibit higher grades which is the key characteristic for successful mine developments.
"The drilling is designed to allow us both to define a maiden JORC mineral resource on Block 4 and to increase our high grade copper mineral resource on Block 5. Drilling is expected to commence next week."
Savannah issued around 13.2mln new shares at 1.7p each. The closing price yesterday was 1.925p. The placing is in two tranches.
After the placing, significant shareholder Rémy Welschinger holds 6.61% of the shares, the firm said.