Botswana Metals said it will raise cash through a rights issues with the proceeds going towards its exploration programme in Botswana.
In a statement on its website, the company said the non-renounceable rights issue will raise US$ 1.9 million underwritten for an amount of US$1 million by Bell Potter Securities Limited.
The terms of the issue are one (1) new ordinary fully paid share (“new share”) for every
three (3) shares held at the Record Date, at an issue price of four
cents ($0.04) per new share.
For every one New Share subscribed, one (1) option exercisable at 10 cents ($0.10) each at any time up to 5pm AEST on 30 June 2013 (“expiry date”) will be issued to the subscriber at nil cost.
“The funds will be used to continue exploration at BML’s three discovery areas at Airstrip Copper, Maibele North and Dibete,” Botswana Metals said.
“The funds will also be used to test additional new targets identified as VTEM anomalies to the East at Takane (PL54/98) and cash for general working capital requirements over the next 12 months,” it added.
Chairman of the company Pat Volpe, said Bell Potter Securities is the Lead Manager and underwriter to the Rights Issue which is underwritten to a minimum of $1 million. The New Shares will rank pari passu with the existing issued shares of the company.