Dreadnought Resources (ASX:DRE) received firm commitments to raise AU$3.1 million through a placement of 388 million shares at AU$0.01 apiece, according to a Wednesday filing with the Australian bourse.

Directors also pledged to invest AU$220,000, pending shareholder approval, the filing said.

The placement proceeds, in addition to the AU$1 million raised through a subscription agreement with Black Cat Syndicate (ASX:BC8), will be used to advance the Mangaroon project in Western Australia, per the filing.

Shaw and Partners was the lead manager for the capital raise.

Dreadnought Resources shares fell 8% in afternoon trade Wednesday.