The company said it agreed with lead agent Clarus Securities to upsize the offer to 13.6 million units after it was "significantly oversubscribed" by new and existing investors.
Each $1.10 per unit will comprise one share and half a share purchase warrant, exercisable at $2 within two years.
Fosterville South said it would use the proceeds for exploration in Victoria and for general working capital purposes.
Major shareholder Eric Sprott is expected to participate in the raising.
Sprott is no stranger to Victoria, having previously been Kirkland Lake's largest shareholder with 14% (he still owns 6.9%) and until last year, he was the company's chairman.
He recently invested in fellow Victorian explorer, ASX-listed Kalamazoo Resources.
Fosterville South listed on Canada's TSX Venture Exchange two weeks ago, but did not raise capital at the time.
It reported about $6 million cash at the time, but last week paid ECR Minerals A$500,000 to acquire three projects in Victoria.
The acquisition took Fosterville South's Victorian portfolio to six projects, of which five have produced gold historically.
The company, led by K92 Mining co-founder and former president Bryan Slusarchuk, has performed strongly since listing.
Shares on the first day of trading closed at C$1.08, but have since jumped to $1.62.
