Pursuit Minerals (ASX:PUR) received firm commitments from sophisticated and professional investors and directors to subscribe for a placement of about 18.3 shares at AU$0.06 apiece to raise AU$1.1 million, according to a Monday Australian bourse filing.

Each participant will also be issued one attaching option for every two shares subscribed at an exercise price of AU$0.09 with an expiry date of two years from the issue.

The proceeds will be used as working capital for the ongoing development of the company's Grande Sur lithium project in Argentina.

Alpine Capital was the lead manager for the capital raise.

The company's shares were down 12% in recent Monday trade.