Shares in Rex Minerals (ASX:RXM) dropped as much as 19% to A$0.203, hitting their lowest level since December 16.

The mining firm has managed to secure commitments to raise A$8 million ($5.23 million) through a share placement priced at A$0.20 per share.

This issue price signifies a 20% discount to the stock’s closing price at the end of July.

Over 4.1 million shares were traded, a volume 10.7 times the 30-day average of 387,032 shares.

Despite the recent fall, Rex Minerals stocks are up 8.7% for the year up to its last close.

Rex Minerals (ASX:RXM) is an exploration firm that searches for and mines minerals.

Exchange Conversion Rate: $1 = 1.5302 Australian dollars.