The project is located 20 kilometres northwest of Norseman in Western Australia.
The funds will also be used for the exploration of gold targets at the Phillips Find Mining Centre and the Burbanks Gold Project.
Barra’s shareholders will have an opportunity to subscribe for up to $15,000 worth of shares each at an issue price of $0.04 per share.
Simultaneously, the company has received firm commitments for a $500,000 placement at an issue price of $0.04 per share to sophisticated investors.
Gary Berrell, chairman, commented: “The SPP and Placement will provide funding for important metallurgical test work and follow on scoping study work at Mt Thirsty at a time when cobalt is now the focus of attention of major battery industry players worldwide seeking to secure long term supply.”
“We believe the pricing is very attractive for current shareholders, being at the bottom end of the recent trading range.”
“With cobalt now competing with lithium as a ‘must have’ commodity in the renewable energy market, this represents a great opportunity to enhance your exposure to the bullish cobalt market.”
Barra Resources raising new capital, bullish on cobalt
Published: 03:00 10 Oct 2016 BST