Meeka Metals (ASX:MEK) secured firm commitments for a AU$40 million institutional placement at AU$0.10 per share, backed by strong participation from existing shareholders and new domestic and international investors, according to a Friday Australian bourse filing.

The placement comprises around AU$33 million in tranche one, utilizing existing Australian Securities Exchange capacity, and AU$9 million in tranche two, subject to shareholder approval at the annual general meeting expected to be held around Nov. 24, per the filing.

The funds will be used to support growth initiatives, including the deferred consideration for the Mt Holland acquisition, development of the new Turnberry underground mine, additional growth drilling, and strengthening working capital as the Murchison Gold Project transitions to two higher-grade underground mines, the filing said.

The company estimates provisional gold recovery of 7,000 to 7,500 ounces for the September quarter, with cash of around AU$21 million before placement proceeds, expected to increase to around AU$50 million following tranche one, the filing added.

The gold and rare earths company's shares tumbled past 24% in recent Friday trade.