Forrestania Resources (ASX:FRS) agreed to acquire the Lake Johnston project in Western Australia from Poseidon Nickel, a Horizon Minerals (ASX:HRZ) subsidiary, for a total consideration of AU$35 million, according to a Tuesday filing with the Australian bourse.

The company is raising AU$32 million through a two-tranche share placement of 182.9 million shares at AU$0.175 apiece to fund the acquisition, the filing said.

Additionally, the company will undertake a share purchase plan to raise up to a further AU$2 million, per the filing.

Forrestania Resources shares fell nearly 3% in afternoon trade Tuesday, while Horizon Minerals shares fell past 3%.