Alice Queen (ASX:AQX) received binding commitments to raise roughly AU$960,000 through a two-tranche placement at AU$0.004 apiece, according to a Monday filing with the Australian bourse.

In tranche one, 102.8 million shares will be issued to unrelated investors, raising AU$411,000, while 137.6 million shares will be issued in tranche two, raising AU$550,224, subject to shareholder approval, the filing said.

Each share issued will come with a free-attaching option with an exercise price of AU$0.008 and expiry date of June 30, 2028.

Proceeds will be used for ongoing exploration and diamond core drilling, reviewing the existing project portfolio, and meeting the company's general working capital requirements, per the filing.

Shares fell nearly 17% in morning trade on Monday.