Nagambie Resources (ASX:NAG) has received a commitment from Pioneer Resource Partners, a U.S.-based institutional investor, to invest up to $2M at its Nagambie mine.

Nagambie Resources says funding from the investment will be used to continue the accelerated diamond drilling of high-grade, antimony-gold, vein systems at the mine, and for general working capital needs.

The company says Pioneer will make the Initial Investment of $500,000 for $549,451 worth of shares and has given another commitment of $1,500,000 for $1,648,352 worth of shares.

It also says the purchase price of the placement shares will be equal to the average of the five daily volume-weighted average prices selected by Pioneer, and subject to the Floor Price of $0.04.