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A-Cap Resources completes $3.25M cap raise; Africa uranium, coal projects funded

A-Cap Resources completes $3.25M cap raise; Africa uranium, coal projects funded

A-CAP Resources (ASX:ACB) has completed the share placement to raise $3.25 million, which was underpinned by its major shareholder Ansheng/China Growth Minerals increasing its stake to 19.99%.

China Growth invested $2.125 million into the placement and a share purchase plan is now open to eligible shareholders.

The fund raising will be used for the ongoing feasibility and development programme at the A-Cap's Letlhakane Uranium Project in Botswana, and to further evaluate its coal project.

A priority over the next quarter will be value adding work to further define high grade uranium mineralization at Letlhakane and metallurgical test work aimed at lowering operating costs per pound.

A-Cap’s Letlhakane Uranium Project, which is one of the world’s largest undeveloped deposits, contains a global resource of 352 million pounds of uranium with strong leverage to a rising uranium price.

Within this, a resource of 90 million pounds of higher grade uranium, 284 parts per million, has been identified and forms the basis of a scoping study completed in February.

Also, A-Cap is also continuing the evaluation of its new coal discoveries at Mea, Bolau and Letlhakane projects as priority. It is hoping to define those coal seams with the highest quality coal that can be made available for early production.

This will include exploration, assay and test work as well as accessing near term development options for these discoveries.

A drilling programme on the Mea Coal Discovery has recently been completed and identified some of the highest quality coal discovered in the Botswana region.

Only a fraction of the tenure has been drilled to date, and the capital raising funding will allow for further development of the current 335 million tonnes of coal, of which at least 95 million tonnes is near surface, export quality coal.


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A-Cap Resources Ltd Timeline

Newswire
June 20 2016

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