Benz Mining (ASX:BNZ) has secured firm commitments for a placement of approximately $13.5 million through the issuance of 33,750,750 new fully paid CHESS Depositary Interests at $0.40 each.
The funds will primarily support the acceleration of exploration at Benz's Glenburgh and Mt Egerton Gold Projects in Western Australia.
Spartan Resources (ASX:SPR), Benz's largest shareholder, will invest around $2 million to maintain its 14.9% stake, subject to shareholder approval.
The placement has attracted strong interest from both domestic and international investors.
Proceeds will fund drilling programs at the Glenburgh Gold Project to test high-grade extensions and other priority targets, along with exploration at the Mt Egerton Gold Project, including near-surface mineralisation exploration.
A portion of the funds will also be allocated to a scoping study at the Eastmain Gold Mine in Quebec.
Benz's Chair, Evan Cranston emphasised the strong backing from shareholders and the substantial growth potential at Glenburgh.
The placement will be completed in two tranches, with the first tranche expected to settle on April 24, and the second by mid-June.
Euroz Hartleys and Tamesis Partners managed the placement, with a 6% fee on gross proceeds.