Letlhakane Uranium Project to get P51M boost
Brian Benza | Tuesday April 8, 2014 11:17
The Letlhakane Uranium Project in the central district ranks as one of the largest under-developed uranium deposits in the world.
A-Cap stated in a press release that the funds received from the placement would enable critical path drilling, process design and environmental work to commence immediately.
“Funds raised from the capital raising will be used to enable the company to complete further feasibility work necessary for a mining licence application in the first half of next year at the Company’s Letlhakane Uranium Project in Botswana,” says the company.
The Letlhakane Uranium Project is one of few global interests capable of commencing production within the next three years and hosts a resource of 308 million pounds of uranium along with separate strata that contain 107.3 million tonnes of thermal coal.
According to A-Cap funds will also be used to advance the Company’s coal projects in Sese following positive reports received from independent consultants on the development potential of these assets.
A total of 81,8 million new shares will be offered in an issue of one for every 3.5 shares held at $0.055 per share to raise approximately $4.5 million. The Issue Price is at a 5.6 percent discount to the volume weighted average of the closing price for the past 15 trading days.
Interestingly, the rights issue will be fully underwritten by Ansheng Investment Company Ltd, an entity that is controlled by Angang Shen, a director of the A-Cap.
In February of 2013 the company completed an internal Scoping Study that evaluated a shallow open pit mining operation of less than 75 metres in depth, and heap leach process route to produce three million pounds of uranium per year over a mine life that exceeds 25 years.
With the commissioning, Botswana will join a group of 10 uranium-producing African countries.