Cygnus Metals (ASX:CY5) received commitments to raise AU$25 million through the placement of roughly 156.3 million shares at AU$0.16 apiece, according to a Friday filing with the Australian bourse.

Proceeds will be used at the Chibougamau project in Canada to cover resource growth and conversion, exploration, permitting work, study completion, early works at the milling infrastructure, and working capital, the filing said.

Shares fell 3% in midday trade on Friday.