Sunshine Metals (ASX:SHN) secured commitments for a placement of AU$3 million, before costs, to shareholders, institutional, and sophisticated investors at an issue price of AU$0.006 per new share, according to a Thursday Australian bourse filing.

Participants will receive one free attaching unlisted option for every three new shares allocated in the placement, exercisable at AU$0.015 and expiring two years from the date of issue.

The first tranche of the placement for 157 million and 293.6 million shares under listing rules 7 and 7.1, respectively, is slated for issue on April 3. The settlement and issue of the second tranche of shares and placement options is expected on or about May 21.

It will use the proceeds to accelerate mining studies and drilling at four key shallow oxide gold targets at the Ravenswood consolidated project in Queensland.

Lion Selection Group (ASX:LSX) committed to invest AU$500,000 as part of the fundraising, emerging as a substantial shareholder with a 7% stake.

It will seek shareholder approval on or about May 20 to approve the issue of the 103.3 million second tranche shares to investors and directors and to issue the placement options and broker options.

Canaccord Genuity (Australia) was the sole lead manager for the placement.