A-Cap Resources Limited (ASX:ACB) intends to raise around $4 million in a fully underwritten non-renounceable entitlement offer to shareholders.
The company will issue around 66 million shares at 6 cents each on the basis of two new ordinary shares for every 6.54 ordinary shares.
Underwritten by Jiangsu Shengan
Any final shortfall will be underwritten by Jiangsu Shengan Resources Group Co Ltd, which holds around 41% of the company.
Jiangsu will not take up its entitlement under the offer and will only take up new shares should there be any shortfall.
Proceeds will be used to fund the flagship Letlhakane Uranium Project in Botswana as well as operational expenditure and A-Cap’s new energy strategy.
The latter includes exploration of nickel-cobalt mineral deposits.
A-Cap recently entered an agreement to acquire a nickel-cobalt project in Queensland, providing it with an opportunity to diversify its portfolio into cathode materials production and supplying the battery industry.