Unico Silver (ASX:USL) received binding commitments to raise about AU$40 million through a placement of roughly 72.7 million shares at AU$0.55 apiece, to existing and new domestic and offshore institutions, according to a Tuesday filing with the Australian bourse.

The offer price represents a 3.1% discount to the stock's 10-day volume-weighted average price, the filing said.

The new shares are expected to settle on Nov. 21, the filing added.

Additionally, the company will offer a share purchase plan to existing eligible shareholders to raise a further AU$5 million, at the same price.

Proceeds from the placement will be used to fund drilling at the company's project.

Shares of the company fell 23% in recent Tuesday trade.