Shares of Lefroy Exploration (ASX:LEX) have experienced a steep drop of as much as 10% to A$0.180 - the lowest they’ve seen since July 3.

The gold mining company has recently stated that it’s secured firm commitments to raise A$6.2 million in a share placement process that was heavily oversubscribed.

This share placement issue was priced at A$0.16, marking a significant 20% discount to the stock’s last closing price.

According to the company, the proceeds from the placement will be utilized to accelerate exploration at their Location 45 project in Western Australia.

Trading volume for the company’s stock is notably high, with 62,763 shares changing hands in contrast to the 30-day average volume of 44,001.

The company’s shares are likely facing their worst day since July 20 and potentially, their worst week since July 21 if the losses persist.

As of the last closing, LEX has seen a year-to-date decrease of 23.1%.

Lefroy Exploration (ASX:LEX) is a gold mining company that is closely involved in conducting exploration at various locations.