Horizon Minerals (ASX:HRZ) secured firm commitments to raise about AU$30 million through a two-tranche placement of 697.7 million shares at AU$0.043 apiece, according to a Monday filing with the Australian bourse.

In tranche one, 274.9 million shares will be issued to raise AU$11.8 million, while 422.8 million shares will be issued in tranche two to raise AU$18.2 million, subject to shareholder approval, the filing said.

The proceeds will support resource and exploration drilling, and refurbishment studies for the Black Swan processing plant in Western Australia, according to the filing.

Petra Capital was the sole lead manager and sole bookrunner for the placement.

Shares fell 2% in midday trade Monday.