Medallion Metals (ASX:MM8) received binding commitments to raise AU$27.5 million through a two-tranche placement of 131 million shares at AU$0.21 apiece, according to a Friday filing with the Australian bourse.

In tranche one, 28.6 million shares will be issued to raise roughly AU$6 million, while 102.3 million shares will be issued in tranche two to raise about AU$21.5 million, pending shareholder approval, the filing said.

Proceeds will be used to advance the sulfide development strategy and provide the company with general working capital, according to the filing.

Lion Selection Group (ASX:LSX) committed to invest AU$2 million as part of the placement, taking its interest in the company to about 3.2%, a separate filing showed.

Medallion Metals shares rose past 8% in morning trade Friday, while Lion Selection Group shares climbed over 2%.