Middle Island Resources (ASX:MDI) entered into a binding share sale and purchase agreement to acquire Konstantin Resources, and will raise AU$3.4 million through a placement of 200 million shares at AU$0.017 per share, according to a Tuesday filing with the Australian bourse.

The offer price represents a 14% discount to the stock's volume-weighted average price in August, the filing said.

The acquisition and placement need shareholder approval, which is expected by late October, the company said.

Shares of the company rose 75% and earlier hit a 52-week high.