Strategic Energy Resources (ASX:SER) has received firm commitments to raise $1.5 million by way of a placement and share purchase plan to support drilling at its Diamantina copper-gold project in Queensland.

The exploration project, about 280km south of Cloncurry, comprises two granted exploration licences covering 630sq km. It targets concealed iron oxide copper-gold mineralisation beneath younger sedimentary cover. 

The capital raise includes a share placement to raise $1.25 million and a share purchase plan to raise a further $250,000. The latter is expected to be fully underwritten by Leeuwin Wealth, subject to an agreement being completed before the offer booklet is lodged.

The placement and share purchase plan have been priced at 12 cents a share.

Related: Twin funding win for Strategic Energy Resources

That represents a 17.2 per cent discount to SER’s last traded price of 14.5 cents on June 24 and an 18.9 per cent discount to its 10-day volume-weighted average price.

About 10.4 million new shares will be issued through the placement, while the shareholder offer could add about 2.1 million shares.

SER said the proceeds would fund exploration drilling at Diamantina, deferred payments to former project owner Anglo American Exploration (Australia), project assessment, working capital and offer costs.

Drilling at Diamantina is planned to follow a July campaign at SER’s Canobie copper project, which is being explored through a joint venture with Fortescue.

SER managing director David DeTata said the funding would support the company’s next phase of exploration.

“The funds will underpin drilling at our newly acquired Diamantina project, where we are very excited about the opportunity to discover a large-scale IOCG discovery – leveraging off the outstanding work completed by Anglo American, including multiple wide historical intercepts.

“Drilling at Diamantina will follow hard on the heels of the imminent drill campaign at our Canobie Project.”

SER directors have committed to invest $100,000 through the placement, subject to shareholder approval.

Eligible shareholders in Australia and New Zealand will be able to apply for up to $30,000 worth of shares without paying brokerage or transaction costs.