Shares of Astral Resources (ASX:AAR) fall as much as 16.3% to A$0.067, their biggest intraday percentage drop since March 19, 2020.

The gold and base mineral explorer says it has secured firm commitments to raise A$3 million ($2.00 million) via a single-tranche share placement.

The issue price of A$0.065 per share is at an 18.8% discount to the last close on July 25.

Funds raised will be used to advance Kalgoorlie gold projects.

Shares hit their lowest level since July 3.

AAR stock is up 11.1% year-to-date, as of the last close.

Astral Resources is engaged in the exploration and development of mineral resources, with a focus on gold and base metals.