Cobre (ASX:CBE) secured firm commitments to raise AU$90 million via a two-tranche institutional placement of around 300 million new shares at AU$0.30 each, according to a Thursday filing with the Australian bourse.

The placement price represents an 8.6% discount to the stock's 10-day volume-weighted average price, per the filing.

Tranche one of the placement will raise around AU$72 million through the issue of around 240 million shares under the company's existing placement capacity, per the filing.

Tranche two is expected to raise about AU$18 million through the issue of roughly 60 million shares, subject to shareholder approval at an extraordinary general meeting expected in late August or early September, the filing said.

The funds will be used to increase ownership in the Sierra Atacama Project, repay debt, fund exploration and development activities, support the Botswana Projects, and provide general working capital, the filing added.

The company's shares fell around 12% in recent Thursday trade.