Shares of Meeka Metals (ASX:MEK) have fallen by as much as 8.7% to A$0.042, marking their lowest level since August 4.

The gold and rare earth company announced it has received firm commitments to raise A$3.5 million ($2.25 million).

The issue price of A$0.04 per share is at a 13% discount compared to the closing price on September 27.

Meeka Metals said that the funds raised will be utilized for exploration and in-fill drilling at the Murchison Gold Project, among others.

As of the last close, MEK stock has fallen 32.4% YTD.

Meeka Metals (ASX:MEK) is a gold and rare earth company with projects in Australia.