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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.

Quick facts: A-Cap Resources Ltd

Price: 0.01 AUD

ASX:ACB
Market: ASX
Market Cap: $8.72 m
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