Rox Resources (ASX:RXL) received binding commitments to raise about AU$200 million through a two-tranche placement of roughly 571.4 million shares at AU$0.35 apiece, according to a Friday filing with the Australian bourse.

Global fund manager L1 Capital committed to subscribe for about 171.4 million new shares in the placement, resulting in 12.9% ownership upon completion, the filing said.

Additionally, the company will offer a share purchase plan (SPP) to existing eligible shareholders to raise a further AU$10 million.

Proceeds from the placement and the SPP will be used for the development and construction of the Youanmi project in Western Australia, resource definition and exploration drilling, as well as working capital, per the filing.

Shares fell 16% in midday trade on Friday.