African uranium junior A-Cap Resources will look to raise $5 million by way of a non-renounceable entitlement offer to shareholders to finalise its bankable feasibility study for its Letlhakane uranium project in Botswana.
The entitlement offer includes approximately 250 000 000 new ordinary shares on the basis of 1 new ordinary share in the company for every 1.9 ordinary shares held, at an issue price of 2.0 cents per share which will be fully underwritten.
The Letlhakane project requires additional works in the calendar year 2016 budget comprising mine plan and pit optimisations, completion of an environmental study impact assessment, metallurgical and process design work, infill drilling to refine JORC reserves, trial mining and pilot plant study and to provide additional working capital.
The issue price represents a 2.50% discount to the volume weighted average price of the company’s ordinary shares on the ASX over the 30 ASX trading days prior to the date of this announcement.
It is proposed that the rights issue will be fully underwritten by Jiangsu Chixiang Precision Gear Co., a company registered and incorporated in China. Jiangsu is listed on National Equities Exchange and Quotations in China known as the New Third Board, the over-the-counter stock exchange in China.
Jiangsu is a shareholder of A-Cap Resources and currently holds as at the date of this announcement 4 750 160 ordinary shares out of 475 056 253 issued ordinary shares in the company.