Redstone Resources (ASX:RDS) secured binding commitments to raise up to AU$600,000 through the placement of 133.3 million shares at AU$0.0045 apiece, according to a Wednesday filing with the Australian bourse.

Participants will also receive a one-for-two free attaching unlisted AU$0.01 option exercisable within two years from the date of issue, subject to shareholder approval, the filing said.

Company directors are committed to subscribing for around AU$30,000 worth of shares in the placement, subject to shareholder approval.

The proceeds will fund planned work programs for the West Musgrave project in Western Australia, per the filing.

Shares rose 25% in morning trade on Thursday.