The subscription included 312,500 new ordinary shares at a placing price of 80p per share.
It will also issue one warrant to subscribe for one new ordinary share for every subscription share with an exercise price of £1. They are valid for an 18-month period from the date the subscription shares are admitted for trading.
The subscription shares are expected to be admitted for trading on November 6 after which the total issued share capital will consist of 14.2 million ordinary shares.
Shefa will use the proceeds to advance Kishon's Zone 1 towards trial mining and progress bulk sampling at Zone 2.
It said the ongoing technical economic evaluation of the Zone 1 alluvial exploration target was progressing.
The company's shares were down 8.11% Wednesday morning to 85p.