Arizona Lithium (ASX:AZL) disclosed plans to raise AU$2 million via a share purchase plan to advance the Prairie project in Saskatchewan, Canada, according to a Wednesday filing with the Australian bourse.

Eligible shareholders may purchase up to AU$30,000 worth of fully paid ordinary shares at AU$0.006 each. The offer has two free attaching options for every three shares purchased, exercisable at AU$0.012 and expiring three years from issuance.

The shares and options are subject to shareholder approval. The issue price is a discount of 33% to the five-day volume-weighted average price of the company's shares.

The company said it decided to abandon an earlier sophisticated investor placement "because the offering was not reflective of what the board considers to be in the best interest of shareholders," per the filing.

The company's shares tumbled past 22% in recent Wednesday trade after hitting a 52-week low earlier in the day.