Medallion Metals (ASX:MM8) received binding commitments to raise AU$6.5 million via a share placement, according to a Monday filing with the Australian bourse.

The capital raising comprises the issue of 65 million fully paid ordinary shares at AU$0.10 each, a 4.8% discount to the company's last traded price.

Existing shareholder Alkane Resources (ASX:ALK) supported the placement and will hold 6.3% of Medallion's shares on issue upon settlement, per the filing. Lowell Resources Fund (ASX:LRT) also committed to the placement.

Meanwhile, Lion Selection (ASX:LSX) committed to invest AU$1 million, making it a new Medallion shareholder.

Canaccord Genuity acted as sole lead manager and bookrunner to the placement.

Proceeds will fund Medallion's activities amid its potential acquisition of assets of the Forrestania Nickel Operation from IGO (ASX:IGO).