The money will also support work at the O'Kiep project, a sulphide copper tailings dump where a 2,500 metre drill programme is planned.
The share sale sees 1.16bn new shares issued at a price of 0.15p each.
"We are delighted to have received strong support on this Placing and the team are incredibly excited about the development work in Chile and the newly acquired Copper tailings project in South Africa,” said chief executive Jan Nelson.
“What is even more encouraging is that the cash was raised at a share price equivalent to the current 6 month VWAP.”
Nelson adds that Chepica is now operating at break even, it is generating good cash flow, and by using some of the proceeds from today’s placing the company will be able to accelerate underground development work.
This work will allow Xtract to deliver significant profit margin within 3 months.
As part of the underground programme the company also intends to ascertain the most efficient and cost effective way to mine the newly discovered gold bearing reef at the Salvadori prospect.
"With Chepica now at break even and producing good cash flow which will be further underpinned by the development work we are carrying out underground, we are poised to transition into a mid-tier low cost copper producer with upside on the gold production in Chile," Nelson said.