A price has not been set for the raising, with the company only saying the price will be set by way of an “institutional bookbuild”.

Some $41 million worth of Sandfire shares, which closed yesterday at $3.45, will go to institutional and sophisticated shareholders.

The remaining $9 million worth have been set aside for major Sandfire shareholder Posco Australia – subject to Foreign Investment Review Board approval and the Australian Securities Exchange issuing waivers to approve that portion of the deal.

The company will also allow existing shareholders to purchase up to $15,000 worth of shares at the same price as the institutional placement, though that placement will be capped at $15 million in total, with a scale-back likely if shareholders pitch into the raising to any great degree.

Sandfire has also announced conditional plans to allow “interests associated” with non-executive director and 5% major shareholder John Hutton to maintain their place on the register, saying the company intends to make a $2.5 million placement to the group, subject to shareholder approval.

The company plans to use the cash injection to complete its feasibility study at the DeGrussa copper-gold project, continue exploration activities at Doolgunna and progress exploration across the rest of Sandfire’s base metal and gold projects in Western Australia and the Northern Territory.

Sandfire shares are currently in suspension pending the close of the $50 million placement, and are expected to return to trading on Friday.