Southern Hemisphere to raise $3.4m

West Perth-based copper junior Southern Hemisphere Mining has announced plans to raise up to $3.4 million through a share placement and entitlement issue.

The company successfully raised $1.2 million through a share placement to sophisticated and professional investors at 4.5 cents per share.

It also intends to undertake an underwritten non-renounceable 1 for 4 entitlement issue at 4.5 cents per share to raise a further $2.2 million.

The funds will be used to meet the company's share of upcoming drilling expenses and prospect acquisition costs at its newly established Los Rulos joint venture with Lundin Mining.

"Given the current market for junior resource companies, we are pleased with the strong support shown in both the placement and the underwriting of the rights issue," Southern Hemisphere managing director Trevor Tennant said.

"I believe this reflects the quality of our projects and the strong pipeline of news flow which we expect this year."

Euroz Securities acted as lead manager for the share placement and as underwriter for the rights issue.

Southern Hemisphere shares closed the day's trade steady at 5.6 cents.