Capricorn Metals Ltd. said Aug. 13 that it is raising A$65 million in two tranches to fund the accelerated development of its preproduction-stage Karlawinda gold project in Western Australia.

The Australia-listed explorer said the fundraising will enable it to satisfy a key condition of the A$107 million debt and gold hedging facility offer from Macquarie Bank Ltd. for the Karlawinda development. The company is working with the bank to expedite availability.

The placement will comprise 406.25 million shares at 16 Australian cents apiece. Shareholders Paradice Investment Management Pty. Ltd. and Hawke's Point Holdings I Ltd. will take part and A$10 million in commitments have been secured from several founders of Equigold NL.

Capricorn Metals will seek shareholder approval for the second tranche of the offering, with a meeting scheduled for around Sept. 24.

The company aims to start construction in the March 2020 quarter, with gold production anticipated about a year later.