VRX Silica (ASX:VRX) has secured binding commitments from sophisticated and professional investors to raise AU$2.1 million via the placing of fully paid ordinary shares at AU$0.072 each, reflecting an 18% discount to the five-day volume-weighted average price, according to a Tuesday Australian bourse filing.

The placement includes tranche one of around 28.5 million shares worth about AU$2.1 million under the Australian Securities Exchange listing rule, and a conditional tranche two of around 700,000 shares worth AU$50,000 for the company directors, subject to shareholder approval, the filing said.

Tranche one shares are scheduled to settle on Dec. 1 and be allotted on Dec. 2, with a general meeting planned for early 2026 to seek approval for tranche two, per the filing.

The funds will be used to support the development of the Arrowsmith North Silica Sand project, the filing added.

The company's shares fell 7% in recent Tuesday trade.