Pacgold (ASX:PGO) received firm commitments for a AU$13 million two-tranche placement via the issue of 173.3 million new fully paid ordinary shares at an issue price of AU$0.075 per share, according to a Friday Australian bourse filing.

Tranche 1 for 23.7 million shares at AU$1.8 million and 22.6 million shares at AU$1.7 million will be issued under the bourse listing rules 7.1 and 7.1A, respectively. Tranche two for 127 million shares at AU$9.5 million is expected to be issued under shareholder approval.

The funds raised via the placement will be used to acquire and restart the White Dam gold project in South Australia, as well as to progress exploration at its North Queensland projects.

Its shares fell 11% in recent trading on Friday.