Encounter Resources (ASX:ENR) will raise AU$15 million via the placement of around 42.9 million shares priced at AU$0.35 apiece, according to a Friday filing with the Australian bourse.

The company will also offer eligible shareholders on the register as of Thursday the opportunity to participate in a share purchase plan, capped at AU$30,000 per shareholder, to raise up to AU$3 million, the filing said.

Proceeds will be used to speed up and expand resource drilling, exploration, and metallurgical test work at the Aileron project in Western Australia, according to the filing.

Shares fell more than 1% in morning trade Friday.

Price (AUD): $0.37, Change: $-0.01, Percent Change: -1.33%