Broken Hills Mines (ASX:BHM) secured firm commitments to raise AU$38.5 million via a strongly supported placement of 38.5 million fully paid ordinary shares at AU$1 apiece, representing a 1.6% discount to the stock's 10-day volume-weighted average price, according to a Wednesday Australian bourse filing.

The shares will be issued under the company's existing placement capacity, with settlement scheduled for Oct. 29 and allotment to follow on Oct. 30, the filing said.

The funds will be used to ramp up resource expansion at the Rasp mine, advance exploration and development at Pinnacles, and unlock the processing capacity of 750,000 tonnes of material per year at Rasp, the filing added.

The company's shares slipped almost 12% in recent Wednesday trade.