PhosCo (ASX:PHO) has secured commitments from new and existing sophisticated and professional investors to raise AU$5 million through a placement of 41.7 million fully paid ordinary shares at AU$0.12 each, representing an 18.6% discount to the 15-day volume weighted average price, according to a Wednesday filing with the Australian bourse.

The placement is expected to settle on Feb. 25, with the shares to be allotted on or about Feb. 26, per the filing.

The funds raised under the offer, together with existing cash, will be used to support ongoing exploration, development activities, and studies at the company's Gasaat phosphate project in Tunisia, as well as general working capital, the filing added.

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