African Energy Resources to raise $7.1m

West Perth-based African Energy Resources (Guernsey) Ltd has announced the completion of a private placement to raise $4.5 million, through ordinary shares issued at 0.27 cents, to fund ongoing feasibility studies on the Chirundu Uranium project in Zambia.

The Chirundu uranium project is located approximately 120km south of the capital of Zambia, Lusaka, and forms part of the Chirundu uranium joint venture project.

The company also announced that it intends to proceed with a non-renounceable entitlement issue, offered at 0.27 cents, on the basis of one share for every fifteen to raise approximately $2.6 million.

The offer will be partially underwritten by two parties to an amount of $1 million.