Empire Metals Ltd (AIM:EEE) said it has raised £1.7mln via a placing of stock at 2p a share.
The new cash will be used to accelerate drill programmes on the Eclipse and Gindalbie projects in Western Australia.
Specifically, the company will carry out further drilling on the Homeward Bound target where it previously intercepted bonanza gold grades.
It will also commission regional exploration work on its recently acquired copper-gold projects at Pitfield, Stavely and Walton, in Australia.
"The support that we have received from new and existing shareholders is an endorsement of our confidence in the potential for significant high-grade gold resource development at our Eclipse and Gindalbie gold projects,” said managing director Shaun Bunn.