The placing and subscription includes 212 million new ordinary shares at 1.25p per share.
Greatland has also issued the same volume of warrants to subscribe for new ordinary shares ab an exercise price of 2p per warrant with a 12-moth exercise period.
The funds raised have increased the company's cash balance to about £6 million.
Greatland CEO Gervaise Heddle said additional funds would allow the company to devote more resources to the Paterson region, while continuing with the work planned at its other projects.
The company recently approved an exploration programme at Black Hills where it had discovered multiple gold nuggets.
Greatland's shares were down 2.36% Monday to 1.28p.
