Brightstar Resources (ASX:BTR) secured firm commitments to raise AU$175 million through a two-tranche placement of 350 million shares at AU$0.50 apiece, according to a Monday filing with the Australian bourse.

The offer price represents an 9.5% discount to the stock's 20-day volume-weighted average price, the company said.

Under the first tranche, the company will raise about AU$52.5 million, via the issue of about 105 million new shares at the offer price, the filing said.

The company will also raise about AU$122.5 million via the issue of about 245 million new shares at the same price under the second tranche, subject to shareholder approval, the filing added.

The company will also allow eligible shareholders to participate in a share purchase plan to raise about AU$5 million at the same price, the company added.

The new shares under the second tranche of the placement are expected to settle in early March.

Proceeds will be used for general working capital, placement costs, and to take the company's Sandstone gold project in Western Australia to a final investment decision.