Maronan Metals (ASX:MMA) said it has entered into a binding agreement with Kinterra Critical Materials and Infrastructure Opportunities Fund II, managed by Kinterra Capital, to raise about AU$22 million via a strategic private placement at AU$0.351 apiece, according to a Wednesday Australian bourse filing.

The company said the issue price represents the five-day volume-weighted average price of Maronan shares through May 15, with Kinterra Fund II to hold about 19.99% of Maronan's issued shares upon completion.

Proceeds will fund Maronan's expanded drilling program to increase the indicated resource base beyond the Starter Zone and advance technical and regulatory workstreams required to complete a preliminary feasibility study and support development decisions for the broader Maronan project, the filing added.