Black Rock Mining (ASX:BKT) received firm commitments to raise AU$5 million through the placement of 217.4 million shares at AU$0.023 apiece, according to a Wednesday filing with the Australian bourse.

The company plans to offer participants one free unquoted option with an exercise price of AU$0.035 and an expiry date of three years from the date of issue for every two shares subscribed for the placement, pending shareholder approval, the filing said.

Proceeds will be used for general corporate costs and working capital, while the company continues discussions on securing funding for the Mahenge project in Tanzania, per the filing.

Petra Capital was the lead manager and bookrunner for the placement.

Shares were down 17% in morning trade Thursday.