Sunshine Metals (ASX:SHN) shares took a severe hit, falling as much as 17.7% to A$0.014, marking the lowest level since July 4.

The significant drop came after the gold and copper exploration company secured a commitment for a A$3 million placement at an issue price of A$0.014 per share.

This represents a steep discount of 17.6% to the stock’s previous close.

The company stated that the new funds will be utilized to accelerate drilling at the Ravenswood project.

Sunshine Metals' stock has been on a downward trajectory this year, falling 15% up until the last close.

Sunshine Metals (ASX:SHN) is a company focused on exploring for gold and copper.