LGI (ASX:LGI) has secured AU$51.2 million from institutional and sophisticated investors through a placement of around 13.3 million new shares priced at AU$3.85 each, reflecting a 0.6% discount to the 15-day volume weighted average price, according to a Thursday filing with the Australian bourse.

The placement will be followed by a non-underwritten share purchase plan (SPP), offering eligible existing shareholders the chance to invest up to AU$30,000 each at the same price, to raise up to AU$5 million without incurring brokerage fees, the filing said.

The SPP is capped at AU$5 million, subject to eligibility requirements, may be scaled back at the company's discretion, and allows participation by eligible directors, per the filing.

The funds will be used to accelerate key projects, fund new high conviction projects in development, and strengthen the balance sheet for future opportunities, the filing added.