The placement was supported by corporate, institutional, professional and sophisticated investors and Musgrave expects to issue shares on or around December 19.
Veritas Securities Limited and Canaccord Genuity (Australia) Limited acted as joint lead managers for the placement.
Musgrave managing director Rob Waugh welcomed the new investors to the company and thanked existing investors who participated in the placement.
He said: “The funding will allow Musgrave to secure three drill rigs in the new year to accelerate drilling at the exciting new Lake Austin North discovery and other targets on the Cue Project.”
Musgrave confirmed the Lake Austin North discovery earlier this month with broad drilling results.
The first diamond drill holes into the A and C-zone targets returned up to 242 metres at 1 g/t gold from 61 metres, including a high-grade zone of 45 metres at 3.3 g/t from 70 metres.
As well as hole 18MODD008, hole 18MODD005, also in A-zone, returned 20 metres at 4.5 g/t from 102.2 metres with the zone remaining open in all directions.
Lake Austin North is 3 kilometres north of the Break of Day gold deposit, which is also within the Cue project in WA’s Murchison district.
Diamond drilling at A-zone is continuing with four holes completed to date for a total of 1,052 metres and assays received for three of these holes.
This program consists of a minimum of seven drill holes for about 1,500 metres and drilling will continue until late December.
A-zone consists of a broad regolith gold halo extending up to 300 metres wide and covering a strike extent of more than 700 metres.
Potential for multi-million-ounce deposits
Speaking to Proactive Investors earlier this month, Waugh said the company had seen thick mineralisation at the project, lots of alteration and “some really good signs”.
He added: “We want to focus our work on the Lake going forward and that’s where we think there is potential for these multi-million-ounce type deposits, the really big ones.
“That will be our focus for the exploration over the next 6-12 months.”
At the Break of Day and Lena gold deposits, Musgrave is continuing development studies to evaluate options to optimise cash flow.
Break of Day hosts 868,000 tonnes at 7.15 g/t for 199,000 ounces and Lena hosts 2.682 million tonnes at 1.77 g/t for 153,000 ounces.
Negotiations are also continuing with Westgold Resources Ltd (ASX:WGX) regarding a mining and processing profit sharing agreement over the existing gold resources at Cue.
This proposed arrangement will not include Lake Austin North.