Barra Resources raises $3.5m

West Perth-based Barra Resources has raised $3.5 million through an oversubscribed placement to advance drilling on its key Mt Thirsty nickel and Phillips Find gold projects in Western Australia.

Barra Resources managing director Dean Goodwin said the placement was oversubscribed at an issue price of 12.5 cents per share, demonstrating strong interest from potential participants.

"The excellent demand for the placement reinforces the strong market interest in our Mt Thirsty Project and our gold project portfolio," he said in a statement.

"These funds will provide us with the opportunity to step up nickel sulphide drilling at Mt Thirsty, push ahead with pre-feasibility work over the shallower oxide resource and continue along strike and infill drilling at the Phillips Find gold project".

The company anticipates settlement of application funds and issue of shares to take place later this week.

The placement will be completed within the company's 15 per cent share issue capacity. Barra Resources cash position post raising will be about $4.5 million