07/04/2014 - 10:25

A-Cap, Lucapa seek capital

07/04/2014 - 10:25

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Perth-based juniors A-Cap Resources and Lucapa Diamond Company have tapped the market for capital as they look to advance their respective projects.

Pit excavation work at Lucapa's Lulo project in Angola.

Perth-based juniors A-Cap Resources and Lucapa Diamond Company have tapped the market for capital as they look to advance their respective projects.

A-Cap hopes to raise $5.8 million through a share placement and entitlement offer to fund feasibility work necessary to secure a mining licence application at its Letlhakane uranium project in Botswana.

It will issue up to 24 million shares at 5.5 cents each to raise $1.3 million from institutional investors in a share placement, while also pursuing a fully underwritten, non-renounceable entitlement offer of about 81 million shares on a one-for-3.5 basis at the same issue price to raise about $4.5 million.

The issue price represents a 5.6 per cent discount to the company's 15-day volume weighted average price.

Arlington Group Asset Management is conducting the placement, while Ansheng Investment Company is underwriting the rights issue.

Both companies are entities associated with A-Cap directors.

Lucapa has meanwhile completed a $5.5 million placement to advance operations at its Lulo diamond concession in Angola.

The placement included the issue of 917 million new shares at 0.6 cents each and about 458 million options, exercisable at 1 cent each, at no further consideration on the basis of one option for every two placement shares.

It was managed by Canaccord Genuity and supported by CPS Capital Group.

Lucapa managing director Miles Kennedy said he was delighted with the response to the capital raising, which was oversubscribed.

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