Rimfire Pacific Mining (ASX:RIM) has received firm commitments to raise AU$3.7 million through a share placement and option exercise, according to a Wednesday filing with the Australian Securities Exchange.

The company will issue 80 million shares at AU$0.025 per share, raising AU$2 million from the placement, the filing said.

Additionally, 80 million attaching unlisted options will be issued on a 1:1 basis, each with an exercise price of AU$0.03 and an expiry date of March 2027, the filing added.

The placement follows the exercise of AU$0.02 options, which has raised approximately AU$1.65 million, with underwriting support for the unexercised portion adding another AU$920,000, expected to settle on March 18, the company said.

The raised funds will support a high-impact 10,000-meter air core drilling program at Rimfire's Currajong Scandium prospect, the company added.

Shares of the company fell 3% in recent Wednesday trade.