Chrome launches $2.3m rights issue

Subiaco-based chrome explorers Chrome Corporation Ltd has launched a pro-rata renouncable rights issue to raise $2.3 million to complete due diligence of the company's acquisitions.

The company will issue one new share for every two held at .5 cents per share, to the tune of 464.8 million shares. It will also issue the same number of options, for 2 cents each.

The deal is underwritten by Aegis Partners Ltd.

The company announced on July 3 that it had reached an agreement with unlisted UK company Blackthorn Mining plc to sell its Ruighoek Chrome project and attached subsidiary, Chrome Holdings Ltd.

The total consideration offered is $21 million, comprising $8.7 in cas ahd a $12.3 million convertible loan note.

Shares in Chrome were the top-traded stock by volume on the ASX for three days preceeding the announcement.