Rox Resources (ASX:RXL) will raise about AU$40 million through a two-tranche placement of 133 million shares at AU$0.30 apiece, according to a Monday filing with the Australian bourse.

In tranche one, roughly 119.8 million shares will be issued to raise AU$35.9 million, the filing said.

In tranche two, roughly 13.5 million shares will be issued to Hawke's Point and one other party to raise AU$4.1 million, subject to shareholder approval.

Proceeds will be used for early underground development at United North and Pollard declines, rehabilitation of the portal and main decline, advancing ongoing infrastructure, and starting detailed engineering of the process plant, per the filing.

Shares fell nearly 17% in afternoon trade Monday.