Desert Metals (ASX:DM1) received firm commitments to raise AU$3.3 million through the placement of roughly 166.7 million shares at AU$0.0195 apiece, according to a Wednesday filing with the Australian bourse.

Company directors pledged to subscribe for up to AU$84,625 worth of shares on the same terms as the placement, pending shareholder approval.

In tranche one, 26.7 million shares will be issued, while the remaining 108.3 million shares will be issued in tranche two, subject to shareholder approval, the filing said.

Proceeds will be used for its planned exploration strategy, including drill testing for extensions of gold mineralization at the Adzope project in the Ivory Coast and following up on gold anomalies at the Tengrela South permit, per the filing.