The company will issue 30 million shares at 20c each, a 13.2% discount to the 30-day volume-weighted average price.

Bridge Street Capital Partners was sole lead manager.

The placement was strongly supported by existing professional and sophisticated investors, as well as several new institutional and sophisticated investors, including affiliates of the Sprott Group.

Proceeds from the offering will be used to advance exploration at Carawine's Tropicana North and Fraser Range projects in Western Australia, and the Jamieson project in Victoria.

Tropicana North was acquired earlier this month from Thunderstruck Investments.

Drilling programs are planned to begin at Tropicana North and Jamieson in late October and November, respectively.

The company started the quarter with $1.7 million cash.

Carawine managing director David Boyd said the placement would fund about two years of exploration.

"In the past month we have added a major new gold exploration project at Tropicana North, generated nickel targets in the Fraser Range and prepared our return to Jamieson to continue the hunt for porphyry copper-gold deposits, so there is no shortage of quality prospects for us to drill," he said.

"We appreciate the strong support of our existing shareholder base, and welcome new institutional and sophisticated investors from both offshore and onshore who have joined our share register."

Carawine also has ground in the Paterson Province, which is subject to farm-in agreements with Rio Tinto and Fortescue Metals Group.

Shares in Carawine were up 4.3% to 24.5c, valuing the company at about $20 million.