GBM Resources (ASX:GBZ) secured firm commitments to raise AU$39.9 million through the issue of 752 million new shares priced at AU$0.053 each, to new and existing domestic and offshore institutional and sophisticated investors, according to a Thursday filing with the Australian bourse.

The offer price represents a 4.7% discount to the company's ten-day volume weighted average price, the filing said.

Proceeds will be used to fund business development activities, exploration, and will be used as general working capital, the filing added.

The settlement is expected to be settled in late November, the company said.

Shares of the company rose past 5% on market close.