Energy Transition Minerals (ASX:ETM) is set to raise around AU$9.4 million via the placing of 137.5 million shares at AU$0.068 apiece, according to a Tuesday Australian bourse filing.

The firm received binding commitments for the placement, which will be completed in a single tranche, under the firm's available placement capacity.

It will use the funds to progress its Kvanefjeld rare earths project in Greenland, including the re-establishment of permanent local representation and infrastructure and updating resource parameters for the project.

The participants in the placement will also receive one free-attaching option for every two shares subscribed under the placement, which will be exercisable at AU$0.12 each and expire 18 months from the date of issuance.

The firm's shares fell 8% in recent trade Tuesday.