A-Cap Resources Limited says it resolved to raise up to $3.25 million by a placement to fund the ongoing feasibility and development programme at the Company’s Letlhakane Uranium Project in Botswana and to further evaluate the Company’s coal projects.
“The placement of up to 32,500,000 shares at an issue price of 10 cents each will be made to professional and sophisticated investors, including the Company’s largest shareholder, China Growth Minerals Limited / Ansheng Group which will increase its shareholding in the company to 19.99% through the placement,” said the company in an update.
It also announced a Share Purchase Plan (SPP) to be offered to eligible A-Cap shareholders registered as such on Friday 15 March 2013. Shares will be offered at an issue price of 10 cents each, which represents a 23% discount to the last closing price for ACB shares on the ASX prior to the Trading Halt on 14 March 2013.
A-Cap Resources Limited is focused on Botswana where it holds over 3,600km² of exploration licenses and last year the company announced the discovery of two new coal projects in Botswana, which transformed the company into a multi-commodity exploration outfit.
A-Cap is the first company to produce a JORC compliant uranium resource in Botswana. The Company’s 100% owned Letlhakane Uranium Project is located in northeast Botswana and has a recently upgraded JORC compliant resource of 351 Mlbs U₃O₈ (at a 100ppm cut-off) – an increase of 35%.
Within this global resource, a higher-grade resource has been defined of 143.2 Mt at 284ppm U₃O₈ for a contained 89.7 Mlbs U₃O₈. This Resource increase comfortably positions the Letlhakane Project well within the top ten undeveloped uranium deposits in the world, and has cemented A-Cap on its road to production.
A-Cap is in the process of completing a Bankable Feasibility Study at Letlhakane, which is on target to be completed in 2014, with first production anticipated 2015.
Also last year, the company said it was been granted coal rights within its Bolau tenements which sit next to the Sese Coal and Power Project owned by African Energy Resources and located immediately north of the Letlhakane Project in Botswana.
The thermal coal horizons within A-Cap’s Bolau tenements are interpreted to be the up and down dip extension of the adjacent Sese Coal Project which contains over 2.5 billion tonnes of thermal coal. Initial drilling by Acap has discovered coal in seams of comparable thickness and quality to the Sese coal deposit.
A-Cap CEO Paul Thomson said last year: “The approval of the amendment to include coal is a major milestone in terms of building our energy business in Botswana. The location of the Bolau tenements next to the Sese Coal Deposit combined with the continuity of coal horizons into our ground provides the Company with another major coal project in close proximity to the Letlhakane Uranium Project. This new coal project together with our discovery of a major coal deposit at Mea to the north east of Letlhakane means that A-Cap is a major player in both the coal and uranium in Botswana”.