Adelong Gold (ASX:ADG) has agreed to acquire the Lauriston Gold Project in Victoria from Currawong Resources, a unit of Canadian gold and copper resource development firm Great Pacific Gold, according to a Thursday filing with the Australian bourse.

The deal includes an upfront payment of AU$500,000, with additional deferred payments and share-based consideration, the filing said.

Great Pacific Gold will retain a 2% net smelter return royalty over all future production from the project, the filing added.

Adelong Gold also received commitments to raise AU$3 million through a placement to sophisticated and professional investors of 545.5 million fully paid ordinary shares at an issue price of AU$0.0055 apiece, the company said.

Participants will also receive one free attaching option for every two shares subscribed, the company added.

Funds raised, along with existing cash reserves and proceeds from asset sales, will be used for acquisition costs, ongoing projects including lithium and gold exploration, as well as working capital and corporate administration.

Shares of the company fell 13% in recent Thursday trade.