Mount Ridley Mines (ASX:MRD) secured firm commitments to raise AU$2 million through a placement to sophisticated and professional investors at an issue price of AU$0.033 per share, with directors committing a further AU$100,000 subject to shareholder approval, according to a Friday Australian bourse filing.

The issue price represents a 9.2% discount to the stock's 15-day volume weighted average price, per the filing.

The funds will be used to accelerate work at the Grass Patch Project, including flotation and bulk metallurgical test work, scoping studies, resource definition, and optimization of the Selectro Process, with resource activities targeting scandium, gallium, and heavy rare earth elements, the filing said.

The new shares will be issued under the company's existing placement capacity, with settlement scheduled for Sept. 10 and allotment expected on Sept. 11, the filing added.