Summit Resources plans $10m raising

Subiaco-based Summit Resources Ltd plans to raise over $10 million through a rights issue which will be fully sub-underwritten by its two largest shareholders, Paladin Energy Ltd and Areva NC Australia Pty Ltd.

Summit said capital raised will be through a renounceable pro rata rights issue which will see about 4.1 million shares issued at a price of $2.49 each to raise $10.3 million.

New shares offered will be on the basis of one new share for every 50 fully paid ordinary shares.

If the maximum number of shares is taken up, Summit will have 210.5 million shares on issue.

Summit plans to use the capital to fund further exploration work on its Isa North tenements, meet commitments under the Isa uranium joint venture with Paladin and to fund ongoing legal costs.