Magnetic Resources has raised A$12 million in a placement aimed at expanding the Lady Julie Gold Project.

The commitments came from a mix of new and longstanding professional, sophisticated, and institutional investors and was heavily oversubscribed, reflecting robust interest from both domestic and international circles.

This financial boost is earmarked for deeper and exploratory drilling at the Lady Julie Gold Project and its surrounding areas, alongside ongoing feasibility studies and general working capital needs, propelling the project towards rapid commercialisation.

Magnetic issued about 13.3 million new shares at a rate of A$0.90 each, slightly lower than the recent market prices, under the guidance of Ord Minnett and Argonaut Securities as Joint Lead Managers.

According to Magnetic's Managing Director, George Sakalidis, the raise marks a thrilling phase in the company's journey, with the prefeasibility study projecting the Lady Julie Gold Project as a low-cost, high-margin initiative promising to produce over 720,000 ounces of gold across a nine-year mine life.