Octava Minerals (ASX:OCT) received firm commitments to raise AU$1.5 million through a placement of 50 million fully-paid ordinary shares at an issue price of AU$0.03 per share, according to a Friday Australian bourse filing.

Proceeds will be used for working capital, continuing testwork at the company's Western Australia project, and for exploration in the company's Federation project in Tasmania, the filing said.

The offer price is a 25% discount to the stock's last closing price of AU$0.04 per share, the filing added.

Participants will receive one free attaching option for every two new shares. The options will have an exercise price of AU$0.08 and expire three years from the date of issue, the company said.

In the same filing, the company said it signed an agreement to acquire Magnes25, the holder of exploration licences that form the Federation project, from the vendors of the project.

The acquisition is conditional, and Octava has 12 months to meet or waive these conditions.

Octava will reimburse vendors AU$96,000 in costs and issue 3.5 million shares, with 2 million more tied to defining a mineral resource equivalent to 100,000 ounces of gold. Vendors will also receive a 1% net smelter royalty.

Shares of the company fell 15% in recent Friday trade.