Prospect Resources (ASX:PSC) received binding commitments to raise AU$45 million via a placement of about 118.4 million new shares at AU$0.38 apiece to new and existing institutional and sophisticated investors, according to a Monday filing with the Australian bourse.

The offer price represents a nearly 13% discount to the stock's 10-day volume weighted average price of AU$0.435 per share, the filing said.

The company will raise AU$38.2 million through the issue of about 100.5 million new shares at the offer price, expected to settle on Feb. 20, the filing added.

It will raise another AU$6.8 million through the issue of about 17.9 million new shares to 15.1% stake shareholder Eagle Eye Asset Holdings, expected to settle shortly after the company's extraordinary general meeting to be held in early April, the company said.

Funds will be used for exploration at the company's Mumbezhi copper project in Africa.

Shares of the company fell 7% in recent Monday trade.