Shares in Poseidon Nickel (ASX:POS) experience a significant drop, falling as much as 11.5% to an low of A$0.023, a level not seen since September 2017.

The substantial dip is in response to the nickel sulphide miner announcing it has received commitments for a discounted placement totalling A$6 million.

With 297.5 million shares offered at A$0.02 per share, this placement comes at a steep 23.1% discount to the stock’s previous closing price.

Poseidon Nickel (ASX:POS) indicates that the raised funds will be utilized for exploration drilling at two key projects, Black Swan and Lake Johnston.

The company’s shares record their biggest intra-day fall since July 17, contributing to an overall year-to-date decline of 35% as of the latest close.

Poseidon Nickel is an Australian nickel sulphide mining company.