The company will place 16.7million shares at an issue price of 8 cents per share and has already received strong commitments from institutional and sophisticated investors.

The funds raised will be used for the Milo scoping study which covers activities including delineation of a maiden copper equivalent resource, metallurgical testing for both copper equivalent and rare earth elements, preliminary mine and processing plane design and financial modelling to demonstrate commercialisation of the Milo ore body.

GBM Resources has revealed that the Milo Scoping Study is moving ahead after assay results confirming broad zones of mineralization and the northward extension of the system beyond the resource outline.

The study, which is set to be completed by mid-year, will be used to move to the next development phase for Milo-the Prefeasibility Study to be undertaken in the second half of 2012.