The funds will be used to aggressively expand gold exploration activities on the company's three wholly-owned exploration permits in Burkina Faso, West Africa.
Burkina Faso continues to emerge as a key gold producing country with a mining friendly government, and is now the fourth largest producer in Africa, with seven gold mines commissioned over the past decade.
Vital is targeting 12,500 metres of predominantly reverse circulation drilling, with the company therefore set for an increase in exploration news flow during 2017.
Mark Strizek, managing director, commented:
"From here the company intends to substantially expand the previously limited auger drilling campaign to delineate further gold mineralisation structures providing a series of drill ready targets.
"As each set of results comes through, the potential of Vital’s permits continues to grow.
"We are delighted that Ausdrill is again supporting the company by participating in the placement and will be undertaking the drilling program."
The placement will comprise two tranches: an initial tranche of 140 million shares (to raise $1.75 million, before costs); and a second tranche of 260 million shares (to raise $3.25 million, before costs).
In addition, Macquarie Bank Limited will be converting $0.6 million in debt to 48 million new shares over and above the placement.
Vital will repay Macquarie Bank $1 million, with the balance of $1.4 million debt to be repaid by 31 December 2018.
Vital has a bank of high grade gold targets to drill test on the Kollo trend, with the company now fully-financed for continuous drilling on multiple targets well into 2018.
Burkina Faso has exceptional geological potential - while still being underexplored.
Vital's interests are along strike from a number of +1 million ounce gold deposits.
The upcoming drilling program will be highly anticipated by investors.