Tolu Minerals (ASX:TOK) secured firm commitments to raise AU$60.5 million through the issue of about 50.4 million new shares priced at AU$1.20 each to institutional and sophisticated investors, according to a Thursday filing with the Australian bourse.

The offer price represents a 1.5% premium to the stock's 15-day volume-weighted average price, the filing said.

The funds will be used to fund exploration, plant refurbishment, mine drives, technical services, working capital, and offer costs, the filing added.

The shares are expected to settle on Oct. 15, the company said.

Shares of the company fell nearly 6% in recent Thursday trade.