Verity Resources (ASX:VRL) is seeking AU$1.5 million through a share placement, according to a Thursday filing with the Australian bourse.

The company received firm commitments to raise AU$307,500 by issuing 25.6 million ordinary fully paid shares at AU$0.012 each.

Participants are entitled to receive one free attaching unlisted option for every two shares subscribed for, exercisable at AU$0.022 per share and expiring on March 19, 2028.

The company also plans to raise an additional AU$1.2 million via a placement of 99.4 million shares and 49.7 million options under the same terms. This is subject to shareholder approval at a general meeting.

Funds raised will be used to advance the Monument gold project in Western Australia.

Verity Resources' shares were down 13% in recent Thursday trade, earlier hitting a 52-week low.