Peel Mining (ASX:PEX) received firm commitments to raise AU$16.3 million through the issue of 191.2 million fully paid ordinary shares to institutional, professional, and sophisticated investors at AU$0.085 apiece, according to a Monday filing with the Australian bourse.

The company also invited eligible shareholders to subscribe for up to AU$30,000 of new fully-paid ordinary shares via a share purchase plan to raise a further AU$2.5 million, at the same price, the filing said.

Proceeds will be used for repayment of existing debt, general working capital, placement costs, expansion into the Philippines, and for funding the production cost of rental pallets, the filing added.

The new shares are expected to settle by mid-November, the company said.

Shares of the company rose 15% in recent Monday trade.