The fundraising is pricing new shares at 7.3c each, with "key shareholder" SSI and undisclosed institutions participating.

Meanwhile an undisclosed shareholder holding about 20 million shares in exiting, "certain institutional investors" agreeing to acquire the stake.

Capital market firms Argonaut Securities and CLSA are acting as joint lead managers in the raising.

Earlier this week an analyst note by Argonaut noted a high grade bornite zone (HGBZ) that Xanadu appears to have discovered with recent drilling.

"While assays remain pending these visual results appear to confirm a HGBZ of at least 500m length, 200m width and 250m in height," Xanadu said.

"This footprint should be sufficient to support block caving operations."

Xanadu shares were down 9.5% to 6.6c in morning trade, capitalising the company at $72 million.

The stock has been on the rise since February, having traded at levels around 4c for much of the past year.