Pivotal Metals (ASX:PVT) received firm commitments to raise AU$3 million via an institutional placement and flow-through shares provisions under the Canadian tax law, according to a Monday filing with the Australian bourse.

As part of the provisions, the mineral explorer will issue roughly 106.3 million new flow-through shares at about AU$0.019 apiece to raise AU$2 million, representing a 90% premium to the concurrent institutional placement.

Under the institutional placement, the company will raise a further AU$1 million via the issue of 96.3 million shares at AU$0.010 per share. This is an almost 29% discount to the last closing price of Pivotal Metals' shares.

Funds will be used for exploration and development activities at the Horden Lake deposit, among others, the filing said.

Pivotal Metals' shares were down more than 14% in recent Monday trade.

Price (AUD): $0.01, Change: $-0.0020, Percent Change: -14.29%