Zambezi Resources has proposed a capital raising of approximately US$1.2 million by way of a 1 for 3 pro rata non-renounceable rights issue of up to approximately 8.1 million new fully paid ordinary Zambezi shares to eligible shareholders at an issue price of $0.15 per New Share.

The funds raised under the rights issue will be applied principally to administration expenses and working capital which will allow Zambezi Resources to proceed towards the oxide copper project bankable feasibility study and to further develop its funding strategy.

In addition to being able to apply for new shares under the rights issue, eligible shareholders who take up their full entitlement will also be able to apply for new shares that are not subscribed for under the rights issue. Under this shortfall facility additional shares will be issued to eligible shareholders at the discretion of the directors of Zambezi.