Arika Resources (ASX:ARI) secured firm commitments to raise around AU$6.5 million, before costs, via a placement to new and existing sophisticated and sophisticated investors, according to a Monday

Australian bourse filing.

Lion Selection Group (ASX:LSX) committed to invest AU$2 million in Arika Resources as part of the capital raise. It will hold around 6.7% of Arika's issued capital following completion of the placement.

Arika will issue 344.7 million shares at AU$0.019 per share. The proceeds will be used to speed up an exploration and resource growth program across its Yundamindra and Kookynie gold projects in Western Australia.

Arika's eligible directors plan to participate for around AU$700,000 through the issue of 36.8 million new shares at AU$0.019 per share, subject to and conditional upon shareholder approval.