A-Cap Resources (ASX: ACB) shareholders have applied for 28,729,321 of the 81,824,282 shares priced at $0.55 each in its 1 for 3.5 non-renounceable, entitlement offer to raise $4.48 million.
Underwriter Ansheng Investment Company Ltd will subscribe for the shortfall of 53,094,961 shares.
Together with the earlier $1.32 million placement to institutional investors, the funds will enable critical path drilling, process design and environmental work at its Letlhakane Uranium Project in Botswana to commence immediately.
Letlhakane ranks as one of the largest under-developed uranium deposits in the world with a resource of 308 million pounds of U3O8 along with separate strata that contain 107.3 million tonnes of thermal coal.
Funds will also be used to advance the Company’s coal projects following positive reports received from independent consultants on the development potential of these assets.
Letlhakane Uranium Project
Letlhakane is one of few global uranium projects capable of commencing production within the next three years.
In February of 2013 the company completed an internal Scoping Study that evaluated a shallow open pit mining operation of less than 75 metres in depth, and heap leach process route to produce 3 million pounds of uranium per year over a mine life that exceeds 25 years.
Power, road, rail and water infrastructure is readily available while the project’s soft near-surface ore requires just low-cost mining and heap leach acid processing.
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