The capital raising involves the issue of up 60 million new shares at an issue price of 20c each, with two new options attaching to every new share.

Up to $10 million of the share placement has been underwritten by Commonwealth Securities, leaving existing shareholders to subscribe for up to 10 million shares and 5 million new options.

The Perth-based company said the proceeds from the capital raising would be used to develop existing exploration properties and to pursue new oil and gas opportunities.

Baraka has secured the rights to explore and develop eight tenement areas covering over 272,000 square kilometres in Mauritania and Mali.

Last Friday, the company said it had signed a heads of agreement with two major international oil and gas companies to farm-in to its five Mali production sharing contracts, where it has now completed 68% of a planned airborne survey.

Once Baraka completes negotiations with the as-yet unnamed companies, a formal farm-in and joint operating agreement will be executed, subject to approval by the Mali Government.