CuFe (ASX:CUF) entered a binding share subscription agreement with Pan African Resources unit Tennant Consolidated Mining Group to raise about AU$15.4 million through the issue of 307 million shares at AU$0.05 each, according to a Tuesday filing with the Australian bourse.

The mining firm will use the funds primarily to advance its flagship Tennant Creek projects in the Northern Territory and for working capital purposes.

As part of the deal, Tennant nominated Peter Main as a non-executive director on CuFe's board.

Additionally, the companies will create a technical committee to evaluate the status of the Tennant Creek project.