Freehill Mining (ASX:FHS) received commitments to raise AU$700,000 through a non-brokered placement to sophisticated and professional investors of 175 million fully paid ordinary shares at an issue price of AU$0.04 apiece, according to a Wednesday filing with the Australian bourse.

It will also issue 87.5 million options on the basis of one option for every two new shares subscribed, with an exercise price of AU$0.008 and an expiry date of May 29, 2028, the filing said.

The company also said it will open a pro-rata non-renounceable entitlement offer to eligible shareholders, allowing them to purchase one new share for every 24 shares held at AU$0.004 per share, the filing added.

The offer is expected to raise up to AU$513,088 through the issue of about 128.3 million shares, the company said.

Freehill Mining will use proceeds from the placement and entitlement offer to expand processing operations in Chile, advance its Yerbas Buenas and El Dorado projects, cover offer costs, and support working capital, the company added.