Cape Lambert Resources Limited (ASX:CFE) aims to raise up to $2 million in a placement to sophisticated and professional investors.
There will be up to around 37 million shares issued at a price of 5.5 cents per share.
Cape Lambert will also issue one free attaching unquoted option for every two shares applied for under the placement.
Funds for Kipushi exploration
The majority of funds raised will be used for exploration at the Kipushi Cobalt-Copper Tailings Project in the Democratic Republic of Congo.
Tony Sage, chairman, said: “The strong support shown from European and Australia sophisticated investors is a great result for the company.
“It enables Cape Lambert to continue exploration and development activities at its Kipushi Cobalt-Copper Project.”
Cape Lambert considered the placement to be the most expedient mechanism for raising funds in a timely manner.
The company recently completed the sale of its 100% royalty in the Mayoko Iron Ore Project in the Republic of Congo for total consideration of $1 million.
It has received $500,000 in cash with the remaining $500,000 to be received as a deferred consideration.