EcoGraf (ASX:EGR) obtained firm commitments to raise about AU$1.2 million through a placement of roughly 5.3 million shares to institutional and sophisticated investors at a price of AU$0.222 each, according to a Wednesday filing with the Australian bourse.

The company said it will use the proceeds to finalize debt financing for the Epanko project in Tanzania, for related development and expansion studies, and for general corporate and administrative costs.

EcoGraf shares fell 19% in recent Wednesday trade.