Northbridge-based Impact Minerals plans to raise $5 million through a placement managed by Hartleys, to ramp-up exploration at its Bostwana uranium project.
Up to 24 million shares will be issued under the placement, with each share priced at 21 cents.
Shares in Impact closed down 2.5 cents to 22.5c today.
"Impact's largest shareholder, China Growth Minerals Limited, is currently finalising its next round of private financing and as such will not participate in this placement," managing director Mike Jones said.
"However, we are delighted by the ongoing support of China Growth which has reaffirmed to us its position as a long-term shareholder that strongly supports Impact's business strategy."
The company is due to start drilling several large uranium targets at its Lekobolo uranium prospect in Botswana this month.
Following completion of the placement, Impact will have $8 million cash on hand.
