Letlhakane project area

A-Cap Resources Limited said it plans to raise $4 million by way of a non-renounceable entitlement offer to shareholders of approximately 100,011,842 new shares on the basis of 1 new share in the company for every 3.75 shares held, at an issue price of 4 cents per share, which will be fully underwritten.

The resources company revealed that shares issued under the Rights Issue will rank equally in all respects with the Company’s existing fully paid ordinary shares.

 
“Proceeds from the Rights Issue will be used to enable the company to complete further feasibility work necessary for a mining licence application in the first half of this year at the company’s Letlhakane Uranium Project in Botswana and to provide additional working capital,” the company stated.

 
According to the company, Letlhakane is one of the world’s largest undeveloped uranium deposits with a JORC resource of 308.1 million pounds U3O8 with high grade resource of 83.7Mt at 447ppm U3O8.

 
It said a programme of feasibility work necessary for a mining licence application in the first half of 2015 is currently underway. The company said the Issue Price represents a 20% discount to the closing price of the Company’s shares for the last trading day prior to the announcement.

 
“The company advises that under the Rights Issue eligible shareholders will be entitled to participate in a shortfall facility and apply for new shares in excess of their pro rata entitlements. Any final shortfall will be underwritten by Ansheng Investment Company Ltd.”

 
Eligible shareholders will be entitled to subscribe for one (1) New Share for every 3.75 existing shares held at 5.00pm AWST Thursday 12 March 2015 (Record Date). The Rights Issue will be fully underwritten by Ansheng Investment Company Ltd (“Ansheng”). Ansheng is a company controlled by Angang Shen, a director of the company.