The company said on Monday that it had received binding commitments for the placement of 22.85-million shares, at a price of 14c each to sophisticated and institutional investors, to raise an initial A$3.2-million.

The placement will be undertaken under MRC’s existing capacity, and will not require shareholder approval.

Following the completion of the share placement, the company will undertake a one-for-nine fully underwritten non-renounceable rights issue, also priced at 14c each, to raise a further A$7.4-million.

The rights issue will open on July 21 and close on July 30.

The offer price represented a 32$ discount to MRC’s last closing price on the ASX, and a 34% discount to the company’s 30-day volume weighted average share price.

MRC on Monday said that funds would be used to continue planned exploration activities, upgrades to the Phase 1 Tormin primary beach concentrator, the installation of a fourth stage cleaner circuit at the Skaland operation, and for general working capital