Proactive Investors - Run By Investors For Investors

A-Cap Resources to raise $4 million in underwritten rights offer

Funds for flagship uranium project in Botswana and the company’s new energy strategy.
Australian $100 notes
The offer is underwritten by Jiangsu Shengan Resources Group Co Ltd

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.

READ: A-Cap Resources acquires nickel-cobalt project as cobalt price hits highest level since 2008

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.

View full ACB profile View Profile

A-Cap Resources Ltd Timeline

June 20 2016

Related Articles

Lindi Jumbo is in southeast Tanzania, 200 kilometres from Mtwara port
April 23 2019
This month's offtake and marketing agreements come after a 'derisking' update to its DFS.
Drilling at Gabanintha project
February 05 2019
The company expects a ‘material’ increase in vanadium resources and will also publish a base metals resource.
De Grey's Pilbara project in northwest Western Australia
March 28 2019
The company has a longer-term vision to grow resources to 3 million gold ounces.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use