True North Copper (ASX:TNC) received firm commitments to raise around AU$12.5 million, via a two-tranche placement of 25 million shares at AU$0.50 per share, to institutional, professional, and sophisticated investors, according to a Monday filing with the Australian bourse.

Under tranche one, the company will issue 17.4 million shares to raise AU$8.7 million, and under tranche two, the company will issue a further 7.6 million shares to raise AU$3.8 million, the filing said.

Additionally, Chairman Paul Cronin has agreed to commit AU$1 million via the placement of 2 million shares, the filing added.

Proceeds will be used to fund the company's priority growth programs, the company said.

Shares of the company fell 7% in recent Monday trade.