Mindax (ASX:MDX) raised AU$7.2 million, before fees, through the placement of 221 million fully paid ordinary shares to parties unrelated to the company, according to a Tuesday Australian bourse filing.

The shares were issued at a 20% discount to the company's 30-day-volume-weighted average price when the funds were received, the filing added.

The proceeds will be used to fund its Mt Forrest iron project in Western Australia and assess other project opportunities, among other objectives.

The company also said it has purchased 4.1% of the issued share capital of Doublebell Resource Wealth for AU$2.3 million.

The company's directors will be exploring ways to assist Doublebell Resource Wealth in assessing the potential of the Bromus project, which contains high-quality quartz and kaolin deposits, per the filing.

The company's shares rose 2% in recent Tuesday trade.

Price (AUD): $0.05, Change: $+0.0010, Percent Change: +2.08%