New Age Exploration (ASX:NAE) secured firm commitments to raise AU$1.6 million via a share placement, according to a Thursday filing with the Australian bourse.

The capital raise comprises the issue of 400 million fully paid ordinary shares at AU$0.004 apiece, representing a 20% discount to the company's last traded price on Feb. 28, per the filing.

For every four new shares issued, investors will receive 1 free attaching option, exercisable at AU$0.012 and expiring on Dec. 21, 2026.

Proceeds are earmarked for ongoing exploration activities at the Wagyu gold project in Western Australia. A follow-up reverse circulation drilling program will start in March, with additional air core drilling planned for the second quarter, the filing stated.

New Age Exploration's shares plunged 20% in late morning trade on Thursday.