Astral Resources (ASX:AAR) received firm commitments to raise around AU$65 million through a two-tranche placement of roughly 325 million new shares at AU$0.20 apiece, according to a Wednesday filing with the Australian bourse.

In tranche one, about 316.5 million shares will be issued, while 7.4 million shares will be issued in tranche two, with company directors subscribing for 1.1 million shares, subject to shareholder approval, the filing said.

Proceeds will be used to advance exploration and evaluation activities at the Mandilla, Feysville, and Spargoville projects in Western Australia, per the filing.

Shares fell 2% in midday trade on Wednesday.