Sipa Resources plans $5.6m raising

Sipa Resources will tap shareholders for up to $5.6 million through an entitlement issue as it plans further exploration at its copper, precious metals and base metals projects.

Sipa will issue about 160 million shares at 3.5 cents each on a one-for-three basis, as well as a further 160 million free attaching options exercisable at 7.5 cents each.

Blue Ocean Equities has been appointed to manage the placement of any shortfall under the entitlement issue.

The funds raised will go towards exploration programs at the Kitgum-Pader precious and base metals project in Uganda, where Sipa holds an 80 per cent interest, and its wholly-owned Thaduna copper project in the Gascoyne Region.

Sipa told the market last month it had discovered standout nickel-copper prospects at Kitgum-Pader after an extensive field exploration program.

The company's shares closed the day's trade 4 per cent lower at 4.3 cents.