Ashburton to raise $2.3m through rights issue

West Perth-based minerals explorer Ashburton Minerals Ltd has announced plans to raise $2.3 million through a rights issue to fund exploration activities in Brazil and Western Australia.

The company will issue three new shares for every four shares held at an issue price of 3.8 cents in a renounceable rights issue.

Ashburton will also issue one option for each new share issued, with option holders being entitled to convert options to shares at 6.5 cents on or before February 2010.

The rights issue is underwritten by Patersons Securities Ltd.

The closing date for receipt of acceptan es or renunciations is 5:00pm WST March 26.