Lachlan Star (ASX:LSA) will raise $4.5 million through a share placement to sophisticated and professional investors.
The placement will issue approximately 45 million shares at 10 cents each.
The capital raised will underpin exploration activities across the company's copper and gold projects in New South Wales’ world-class Lachlan Fold Belt.
"The positive response to this capital raising puts us in a strong position to progress our planned drilling and exploration programs across our asset portfolio in the Lachlan Fold Belt," said Lachlan Star CEO Andrew Tyrrell.
Drilling is scheduled to commence in early October at the Basin Creek prospect.
The exploration will target the high-grade semi-massive copper sulphide system identified in previous drilling, with historical intercepts including 21.3m at 4.51% copper.
Additional geophysical work will also be conducted to identify further drilling targets along a 1.4km corridor.
Plans are also in place for the North Cobar Project, with drilling targets identified based on favourable structural intersections and anomalous surface geochemistry.
Induced polarisation geophysics is set to refine drill target positions in November.
The placement includes $4.3 million from sophisticated investors in Tranche 1, with settlement expected on Oct. 1.
The remaining $160,000 in Tranche 2 will come from directors, pending shareholder approval at the annual general meeting in November.